Rotorua developments: Quarter-billion dollars worth of new buildings consented

Hideaway of Rotorua is building a 24 unit accommodation block to be similar to its modern existing units. Photo / Supplied

A tough economy isn’t stopping a pair of motel owners from achieving their multimillion dollar plans for their business.

Heng Zhang and Irene Shi, who bought Hideaway of Rotorua in 2017, were last year granted a building consent worth $4.2 million.

In total, more than a quarter of a billion dollars worth of new buildings were consented in Rotorua in the year to September, according to Stats NZ data.

Hideaway of Rotorua, 10 minutes from the city centre towards Ngongotahā, recently began laying foundations for its plans, valued at $4.2m.

Building for the new block of 24 units was hoped to be complete in a year.

Shi said the next stage was to build a new reception, entrance, conference room and a kitchen area or restaurant to offer breakfast to guests.

Rotorua's The Hideaway Lodge owners Heng Zhang and Irene Shi have big plans for their business. Photo / Laura Smith

She said they also wanted a swimming pool and new playground, as well as a few more animals to add to their two alpacas and sheep. Shi said the animals were a hit with guests.

Their overall goal was for a modern, green, spacious and homely place for people to holiday and stay.

Zhang said their investment was to create points of difference from others in the city.

While the economy and tourism sector had “suffered considerable challenges”, Shi said they wanted to keep investing and had confidence things would ease.

“We’ve been waiting for too long.”

Customers included families, couples, travellers and commercial guests.

The pair were proud of their continual efforts to update and modernise, and Shi said they were both excited to see their ambitions in action.

Hideaway of Rotorua is building a 24 unit accommodation block to be similar to its modern existing units. Photo / Supplied

From October 2023 to September 2024, Rotorua Lakes Council said it issued 677 residential consents worth almost $140m and 131 commercial consents worth $49.6m.

Residential consents can include fireplaces, sleepouts, garages and similar.

The top valued commercial consent - $11.5m - was for a cross-laminated timber storage building in Waipa.

Other high-value consents were for the accommodation building, a lifestyle village community centre, an industrial building, and nursery facilities including earthworks, site services, utility and staff buildings.

In a note to Local Democracy Reporting, the council said there had been a much-needed increase in housing supply.

This included new homes and social housing in recent years, which he said was reflected in the increased number of consents the council processed.

Stats NZ data shows 573 new building consents were issued last year, up to September, totalling a value of almost $259m.

These can include farm, education, religious, public transport, commercial and residential buildings.

New apartments, townhouses, units, and other dwellings more than doubled the 2023 value at 299 consents valued at $112.2m.

In 2023, 174 were consented totalling $49.5m.

Kāinga Ora Bay of Plenty regional director Darren Toy at a council meeting in March. Photo / Laura Smith

Kāinga Ora Bay of Plenty regional director Darren Toy said, as of the end of October, about 350 new social houses were planned for Rotorua.

Of these, around 260 houses were expected to be delivered in 2025, and about 90 houses in 2026.

Ten developments of about 65 houses were under assessment, with costs and plans for these proposed projects under review to “ensure best value for money as well as considering if there are other better options for using these sites”.

Laura Smith is a Local Democracy Reporting journalist based at the Rotorua Daily Post. She previously reported general news for the Otago Daily Times and Southland Express, and has been a journalist since 2019.

- LDR is local body journalism co-funded by RNZ and NZ On Air.