Mr Stubbs was previously on the board of Tourism New Zealand and is the chairman of the Rotorua Airport Board.
He said he was optimistic about Rotorua's future and was looking forward to the new role.
"This new organisation creates the opportunity for greater focus and collaboration, both within the council family and with the business and investment community. These are the reasons why I was delighted to accept the appointment.
"The goal of the new organisation is to help the council achieve its 2030 vision for Rotorua. We will do that by helping existing Rotorua businesses to grow, and working together with the business and investment community to attract new investment, businesses, residents, visitors and students to Rotorua. A great example is the tourism partner investment programme - our commitment to that programme won't change."
Rotorua mayor Steve Chadwick welcomed the creation of the new development organisation and the appointment of Mr Stubbs.
"The creation of this board will allow us to better co-ordinate and streamline our economic development activities and ensure our district is competitive and attractive to residents, businesses, and visitors," she said.
Chamber of Commerce chief executive Darrin Walsh said he believed the move to merge was the right decision.
"I think having the two organisations come together will give a more co-ordinated and combined approach to economic development and the chamber looks forward to working closely with the new organisation moving forward."
Deputy mayor and economic portfolio lead Dave Donaldson also welcomed the appointment.
"Peter has a very extensive skill set and a great deal of experience here and around New Zealand," he said. "The creation of this new organisation is going to let us build higher levels of strategic cooperation and represents a great opportunity to boost the economic development of the district as a whole."
In approving the report the council formally thanked members of the Grow Rotorua and Destination Rotorua boards.
