Work on Rotorua 5-star hotel to start soon

FUTURE HOTEL: Developers of a hotel in the former Zen building say plans are going ahead. PHOTO/FILE

A hotel chain has signed up to operate a five-star hotel in the former Zen building with construction expected to start in July.

While he wouldn't yet confirm who they had partnered with for the new hotel, Chow Group Management Ltd director John Chow said the company would announce the new operators in the coming months.

He said the group had bought the Zen Building in 2015 with the intention to heavily refurbish it and reopen it as a five-star hotel.

Mr Chow said the hotel would service business and leisure travellers.

"It was always our intention to appoint a hotel management company to operate the business and we received much interest from respected international hotel brands."

He said they had taken their time to assess the merits of each brand and which would be the right fit not only for the property style, but also the local market.

Mr Chow said preparatory work had started and they were working with a team of architects and interior designers as well as the hotel operator on the design. On site construction will start in July.

Mr Chow said they were looking at the end of 2018 or start of 2019 for a "soft opening".

The Chow brothers formed Chow Group in 1999 and own 16 other commercial properties, mostly in Wellington and Auckland.

They 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.