Investor proposal to return Chateau Tongariro to hotel status should be considered - mayor

Ruapehu Mayor Weston Kirton wants the Government to consider a proposal to return Chateau Tongariro to its former status as a hotel. Photo / Jimmy Ellingham, RNZ

By Nine To Noon of RNZ

Ruapehu’s mayor says the Government should consider a proposal from an unnamed investor to return the Chateau Tongariro to its former status as a hotel.

The heritage building has been sitting empty since it was closed in February 2023 because of its earthquake risk, and the Government has said it could be demolished or decommissioned.

Mayor Weston Kirton told Nine to Noon the response to a petition he put to the Government to preserve the building was encouraging, but there were still many issues to resolve.

“We have an investor – a New Zealander – who has experience in high-end hotels, five-star hotels, and heritage buildings and has a history around this type of activity.”

The investor was willing to put down about $100 million of private money to refurbish and repair the Chateau, Kirton said.

He was also asking for a 120-year lease, which is significantly more than the Government usually allows, he added.

The Government preferred to talk in terms of 30-year leases, which would discourage anyone from making such a significant investment into the Chateau, Kirton said.

The building has been in the hands of the Department of Conservation (DoC) since it was closed, as it sits on conservation land.

He pointed out that while the Government was making a decision on what to do with the building, it was gradually falling further into disrepair.

“Every year that goes by adds to the expenditure on that particular building.”

Although it was important for DoC to maintain control over conservation land alongside local iwi, it was a pity the Government would not consider carving out the land around the Chateau for a potential sale, Kirton said.

“That’s unfortunate,” he said – although he agreed that would set quite a precedent for future concessions.

For a deal to get done that would work for the investor, there would likely need to be changes to the Conservation Act in Parliament, Kirton said.

“That’s not hard for them to do ... all they need to do now is put it up to Parliament to actually get it over the line and get on with the job.”

He said they had held talks with local iwi, who were “very interested” by the investor’s proposal.

“They are very passionate about the activities that could take place there, and it’s because they’ve been involved over the last few decades.

“This is not new to iwi – they see the potential for investments themselves.”

Kirton said it was his understanding that DoC and the Government had not engaged iwi to the same level as the private investor.

-RNZ