Hotel on Cup clock

Two-thirds of Westin Hotel's top-quality accommodation is inaccessible because of an investor-management dispute. Photo / Supplied

Room owners in Auckland's Westin Hotel hope they are close to a deal in which the five-star accommodation will finally reopen fully.

Two-thirds of the plush waterfront hotel has been locked up since October, thanks to an impasse between the out-of-pocket investors and the hotel management company.

With fewer than 100 days until the Rugby World Cup begins, the owners, the hotel operator and the wider Auckland tourism industry are anxious for the dispute to be resolved.

The management company is Lighter Quay Hotel Management, owned by one of developer Nigel McKenna's companies, Melview Viaduct Harbour. Lighter Quay and Melview have been in receivership since June last year.

The latest receivers' report says Lighter Quay owes room owners an estimated $6.8 million in back rent.

After months of missing rent payments, the mainly Malaysian and Singaporean investors gained a High Court order last year cancelling their leases.

It meant they could take control of their rooms and, as a result, 95 were withdrawn from the hotel pool on September 1.

A month later, a further 19 rooms were withdrawn, reducing the hotel operation from 172 rooms to just 58.

The much smaller hotel capacity led to 99 job losses.

Receiver KordaMentha said it had continued to try to find a solution, but owners had rebuffed its attempts to settle. One of the sticking points was that under the old leases owners were required to pay extra for using the common facilities such as the restaurant and lobby, which are owned by Melview.

The group of 114 room owners has also been back to the High Court to challenge the building-management agreement and the secretarial-services agreement, both held by McKenna-related companies.

They also argued that body corporate rules amended by the developer when it was still the sole owner of the hotel overstepped the mark, particularly amendments restricting the investors' rights to deal with their own rooms.

Justice Heath agreed that the secretarial contract and a number of the body corporate rules were unenforceable, but he upheld the building management agreement.

Christchurch hotel operator Graham Wilkinson is leading the charge for the room owners, and has been appointed the new body corporate secretary.

Wilkinson said this week there had been "quite a bit of negotiation going on".

Owners achieved some of the things they wanted with the latest court decision, but in itself it wouldn't settle the dispute.

He hoped to be able to say more next week.

The Westin had been fully booked for the RWC. Ross Jamieson, of official Cup accommodation bank organiser Williment Travel, said when the dispute arose rugby fans who were to stay there were rebooked at the SkyCity Grand.

However, the Westin offered top-quality accommodation and most people visiting New Zealand for the tournament were relatively well-heeled. Tour organisers would "dearly love" to be able to sell it again, he said.

New Zealand Hotel Council independent chairwoman Jennie Langley said a lot was planned for Auckland in the months following the RWC.

"It's a pity accommodation of that quality isn't being fully utilised."