Plan is good news for city: Chadwick

The Zen Building has been sold and there are plans to turn it into a 150-room four-star hotel under the Chow brothers’ ownership.

One of Rotorua's tallest buildings is on course to be turned into a 150-room four-star hotel under the ownership of property magnates the Chow brothers.

John Chow confirmed to the Rotorua Daily Post yesterday that the Zen Centre at 1135 Arawa St would be turned into a brand new hotel.

He will be the project director.

Mr Chow said the sale had not yet settled but he was confident it would go through by the end of the month.

"It's still early days and the project has just started," he said.

"We can see the potential in Rotorua. We'll have more details once we've settled, but it will have a couple of restaurants, 150-rooms and everything you would expect from a four-star hotel."

Mr Chow and his brother Michael formed Chow Group in 1999 and own 16 other commercial properties, mostly in Wellington and Auckland.

The Chows were once known as the brothel brothers after putting in plans for a super-brothel in Auckland. The 15-storey Palace Hotel fell victim to fire in 2010 and was eventually demolished. They decided against going ahead with the super-brothel and put the land back on the market. They also own two clubs on Auckland's Karangahape Rd and Gore St.

Mr Chow told the Rotorua Daily Post he and his brother were always on the lookout for investment opportunities.

"We like the location [of the Zen Centre] and we can see the potential for a Rotorua operation. It's one of the largest buildings in the city.

"We're always looking for the right opportunities. There's a need for more accommodation, more hotels. Rotorua needs something new."

He said he visits the city two or three times a year to "relax" and has made contact with the tourism industry. "They've been quite helpful. Rotorua is a good spot for people in Auckland. We can see the potential for people coming here on holiday.

"Chinese people, in particular, quite enjoy Rotorua as it's a different style of city. A big part of the market will be from Asia."

Rotorua mayor Steve Chadwick said the city's economic news just seemed to get better and better.

"Investment in this building, and its potential development as another high grade hotel, is very good news for our inner city revitalisation. This is a wonderful sign of increasing investment confidence in Rotorua. It's certainly a very good time to be mayor of a city and district that are clearly on the move."

Zen Building

* 10 storeys tall
* Panoramic views over the city and lake area
* Main entrance and foyer on the ground floor
* Eight levels of office space
* Secure parking for up to 45 vehicles between the ground floor and level one
* Originally used as a government building
* Proposed new hotel of 150 rooms and two restaurants