Resort struggles for guests

Marama Resorts, the company that manages Marama Point Resort, a luxurious canal development alongside the Ohau Channel in Rotorua, has been handed over to interim liquidators after a disappointing first year.

The resort, which features more than 70 units, a pool, gymnasium, tennis court, spa and restaurant, was officially opened in December last year. Investors snapped up all the units priced at up to $300,000 each.

Although some bought the units as holiday homes, around two-thirds opted for short-term leases promising rental returns of around 8 per cent a year for at least the first two years.

A brochure given to investors boasted that the "guaranteed investment plan" was "one of the safest, most enjoyable ways to put your money to work for you".

Investors have now been told they will not be getting the returns promised because of lower-than-expected occupancy rates.

- NZPA