Work on new hotel in CBD resumes

The Sofitel is rising on the former Reserve Bank site in Customs St East. Photo / Jason Dorday

Work on Auckland's most upmarket new hotel has resumed after the main Korean contractor left, scaffolding was dismantled and the job which started two years ago lay idle for months.

French-headquartered Accor wants to open a five-star $50 million 131-room Sofitel So at the ex-Reserve Bank building site at 67 Customs St East in the CBD, opposite the historic $1 billion Britomart restoration project.

Accor had hoped to open the hotel in 2013. Now, it says it will not open until 2017.

Construction issues have dogged the site. No work has taken place for many months at the building owned by interests associated with the wealthy C.P Group and its Pandey family.

In February, C.P. Group's project director Jonathan Williams, described problems with the main contractor, Plus Construction NZ, and its Korean parent.

"The construction process had been slow-moving due to a larger than expected demolition phase which has lengthened the overall programme," he said.

Final building consent to convert the office building into a hotel was only obtained last November, he said, indicating there were payment issues.

Scaffolding business then Acrow removed its equipment.

Earlier this year, its managing director Mark Irvine said the issue was non-payment from the building firm.

Scaffolding had first gone up in October 2013, he said, but payment issues had arisen right from the start of the work and the scaffolding was being removed in January this year.

A Sofitel boss has now confirmed building work has resumed and gave the new opening date.

Chris Sedgwick, operations senior vice-president for New Zealand, Fiji and French Polynesia, gave an update, saying: "SO/Sofitel in Auckland is scheduled to welcome guests in 2017 bringing another exciting dynamic to Auckland and the Britomart precinct for both locals and world travellers.

"The luxury lifestyle brand of Accor Hotels, the hotel will feature 131 rooms, a roof top bar, restaurant, gym, lap pool and spa, an executive lounge and state of the art conferencing.

"Construction of the new-build hotel is currently being managed under a construction management contract," Sedgwick said.