Zen hotel plans going ahead

Rotorua's Zen Centre is to be transformed into a hotel. PHOTO/FILE

Plans to transform Rotorua's iconic Zen building into a hotel are going ahead, despite delays.

Well-known property magnates Chow Group bought the building on Arawa St last year with plans to transform it from offices into a 140-room four-star hotel.

They had planned to open the new hotel early next year.

John Chow said there had been some delays but they had almost reached a finalised agreement with an operator for the hotel.

"I can't talk too much until we have that signed but we are still working on it and it is still going ahead."

Mr Chow had previously told the Rotorua Daily Post he and his brother Michael saw Rotorua as a safe investment bet because of the rocketing tourism numbers.

He said they were also looking at other investments around the city.

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.