Push for Rotorua 5-star hotel

A high-end lakefront hotel is in the pipeline. PHOTO/FILE

A new study has revealed New Zealand needs an additional 26 new hotels, leading the Government to help developers get in touch with potential investors.

The news was welcomed by Pukeroa Oruawhata Trust client manager Peter Faulkner, who said any help from the Crown would be good for the trust's plans to build a 5-star hotel and spa complex near the Rotorua lakefront.

New Zealand Trade and Enterprise (NZTE) released details today of a study into investment in hotel infrastructure saying a shortfall in new hotel rooms was expected across New Zealand's main tourism centres.

The shortfall was expected to be up to 4526 rooms across Rotorua, Auckland, Wellington, Christchurch and Queenstown by 2025.

The research was a key part of "Project Palace", a programme to accelerate private sector investment in hotel infrastructure led by NZTE and the Government's Investment Attraction Taskforce.

Mr Faulkner said the trust had already been in discussions with NZTE, facilitated by Destination Rotorua Marketing.

"We are working through a process of fine-tuning the concept of a lakefront hotel and moving toward a fully developed design allowing us to get a firmer idea of costing.

"Up until now it's been a conceptual view - we want a 5-star hotel - but how much will this cost?

"It would be helpful, but it's a big world out there and when you are talking to investors about, for example $100 million, you are talking to a fairly rarefied group of people, but to have the support of the Crown behind you makes those discussions a lot more credible.

"Any support we can get from the Crown will be gratefully received, including financial support, but also support from other mechanisms, like introductions to third parties," Mr Faulkner said.

Rotorua mayor Steve Chadwick said it was clear from feedback from the recent Trenz conference that Rotorua needed higher-end accommodation, with focus on a 5-star hotel.

"Having a 5-star property in Rotorua would complement the other accommodation options we already have.

"Being part of this project to attract higher-end accommodation investment ... will assist to raise the profile of Rotorua as a visitor industry investment destination and potentially provide opportunity for some Rotorua based partners to take advantage of the projects," Mrs Chadwick said.

"This growth will be driven by the buoyant international tourism market and in particular the strong growth in Chinese visitors to New Zealand. Chinese visitors love Rotorua so material growth in this market will have a direct and sizeable impact on local hotel demand."