Rotorua will get a much-needed boost in accommodation with two luxury 5-star apartments opening at the end of this month, and five more to open by the end of the year.
The building cost for the high-end accommodation is expected to total around $3m and comes off the back of the 5-star Pullman Hotel being developed by Chow Group Management Ltd in the former Zen Building on Arawa St.
This latest announcement has been praised by a local tourism boss who says the city needs more high-end accommodation if it is going to try attract "high value visitors".
The apartments, called Kings on Peace, are being built by Sport of Kings owners Ian and Jyl Morrison, and will be run by existing managers Pete and Tristen Williams.
The first stage, two two-bedroom apartments, is due to open by the end of this month.
The second stage, four one-bedroom apartments and one studio apartment, has just been consented and construction is to begin, finishing around November.
"Rotorua needs really nice, 5-star accommodation so when the property next door went up for sale it was the perfect opportunity to not only grow this business, but fill a gap in the Rotorua market," Mrs Williams said.
"We've gone with a dynamic new design interlinking through a foyer system so the two apartments at the front for example could house two couples or a whole sports team," Mr Williams added.
Sport of Kings motel managers Pete and Tristen Williams are excited to bring more 5-star accommodation to the city. Photo/Ben Fraser
The apartments have a Kiwiana theme, from the 'White Island' paint on the walls to the Kiwi-owned Ferryway Mattress Company beds.
"I'd say 90 per cent of the furnishings are Kiwi-made. We also wanted it to feel homely so it is not furniture you get commercially, it is all stuff you would have at home, but with that touch of luxury.
"We have a huge number of return guests at Sport of Kings so many of them are just waiting for this first stage to open - we're already taking bookings."
Each apartment in the second stage will have a private hot tub and both stages will have electric car charging stations.
Mrs Williams said finding ways to "future proof" and grow the business was always on their mind.
"This will be a such a positive for Rotorua, attracting more guests to stay in town rather than the exclusive lodges on the outskirts of the city."
Destination Rotorua chief executive Michelle Templer said the announcements of new accommodation in the pipeline was certainly positive for the region.
"Our visitor industry continues to go from strength to strength, so increased luxury accommodation capacity will be well received by the people coming to visit and the travel trade selling Rotorua to offshore markets alike.
"New investment, redevelopment and a refreshed accommodation stock is a critical component in providing world class visitor experiences."
Ms Templer said a key strategy for Destination Rotorua would be increasing the number of "high value visitors" coming to the region.
"The announcement of the new 5-star luxury apartments off the back of the 5-star Pullman Hotel being developed in the city centre is excellent news.
"That we continue to see new investment into the region supports the positive result of the recent Westpac survey on business confidence.
"Confidence in Rotorua and the wider Bay of Plenty is very high so we hope that we see continued investment in Rotorua, not only in the visitor industry, but in our other high performing sectors like forestry, agriculture and services as well."
The site for a new 28-room motor lodge being built on Fairy Springs Rd. Photo/Stephen Parker
Meanwhile the largest consent issued by the Rotorua Lakes Council in May was for a 28-room motor lodge being built on Fairy Springs Rd.
The motor lodge, which will include a conference room and manager's residence, was issued a building consent on May 31 worth $1.8m.
The developer, who wished to remain anonymous, told the Rotorua Daily Post he saw an opportunity to fill a need in the accommodation sector and hoped to open by December.
"Tourism is obviously taking off but there are still real shortages in accommodation in Rotorua, Auckland and Queenstown. Being from Rotorua originally we thought it would be a easy fix.
"It was a matter of right time, right real estate. We have dealt with this kind of business in the past so we know what is involved."
He said the location, on the corner of Fairy Springs and Monokia Rds, would be a drawcard for visitors.
"This area is being built up, with the Countdown there now, and Skyline just a stone's throw away. The building was for sale for a while so we decided to go for it.
"It will be middle of the road accommodation for families."
He said they would be looking to hire around six staff who he hoped would be locals.
