First part of Auckland developer's hotel chain opens

Residents of the Connaught (right) complained that McKenna's development blocked their light. Picture / Brett Phibbs

Auckland developer Nigel McKenna is starting an accommodation chain and has opened units in a controversial Auckland block as the first hotel in the new group.

A 24-level, 447-unit residential block which he originally called The Grand is now finished.

Many units were sold to residents who will live in them, but 250 apartments have become the Quadrant Auckland hotel.

McKenna is also planning to label one of the buildings in his $300 million Queenstown project under the same name.

The Auckland and Queenstown projects are part of a new hotel chain McKenna is launching, after developing specialist student accommodation via his UniLodges in Auckland.

A spokeswoman for McKenna's Melview Developments said the building had fewer than the planned 447 units because some floor space in the block was developed as hotel recreational space, including a bar, restaurant and function room.

McKenna developed inner-city student towers UniLodge on Anzac (in Anzac Ave) and UniLodge on Beach (Beach Rd).

He is building Wellington's first Holiday Inn and almost finished a large new Viaduct Harbour waterfront hotel at Lighter Quay, but gave no more details of its management or operation.

McKenna's new Quadrant Hotel Group has appointed a development chief, Paul Evans, and general manager of Quadrant Auckland, Hayden Porter.

A Melview spokeswoman said that studio rooms in the Quadrant Auckland would start at $125 a night plus GST.

The project bucked a trend for foreign investors to buy existing hotels rather than develop new ones because of high land prices.

During its construction and marketing phase in the past three years, Melview repeatedly called the Waterloo Quadrant building The Grand and Melview still has it posted under that name on its website.

The project was built between the Hyatt Hotel and the High Court and in 2003 residents of the neighbouring 17-level, 154-unit Connaught criticised it, saying its proximity to their block would obscure views and darken lower-level units.

McKenna said the Connaught block was built right against the boundary.

"The site was developed to the max," he said, so residents should have known about the potential for change.

He advised that if they had a problem, they should take it up with their developer, Paul Doole.