Hotel investors say rates, rent unpaid

Investors who bought rooms in Wellington's Holiday Inn developed by Nigel McKenna are complaining they are owed money.

Some have not had their guaranteed rent for months, they say, although McKenna's business has attributed problems to computer errors. About 300 investors bought rooms in the high-rise hotel based on rental assurances which they entered into with one of McKenna's companies which has the hotel management contract.

Anton Nadilo, of financial business My Money Mentor in Wellington, said yesterday that two of his clients had bought rooms in the $100 million hotel and were owed $10,000 but he knew of many other people also owned money. Nadilo stressed he had not advised the clients to buy the properties and he only wanted to help them out.

One Wellington lawyer is working with a group of 30 disgruntled investors understood to be owed $80,000 to $90,000.

Nadilo said the investors were astonished when both rent and rates were left unpaid for weeks.

In March, the Herald also received emails and calls from another couple owed thousands from their Holiday Inn room. That dispute dated back to August last year and the couple contemplated occupying the room to lock out hotel guests. Seeking Melview's comment on that situation via its external public relations executive eventually resulted in that couple's rent being paid.

Paul Evans, director of hotels at McKenna's Galway Tourism Investment Group, reassured the investors and answered their concerns about late Wellington City rate payments.

"We can confirm that payment for your rates was paid by us the other day and council will also confirm this once they have had time to reconcile the payment. We have previously paid rates to Wellington City Council, however we have experienced some issues when we upgraded our accounting software, so apologies again for the late payment of your return," he said.

"I can advise that the hotel is doing extremely well and forecast occupancy is also looking strong to the end of the year. The hotel also continues to be a market leader within its competitor set and is now very well recognised within the city."

Melview's spokesman said the matter was a simple misunderstanding and there was no cash flow issues at Melview. To raise these, he said in March, would be potentially extremely damaging for Melview and he asked the Herald not to publish details of the dispute which had been resolved.