$100m hotel tipped to bring Taupo 500 jobs

A consortium of Kiwi and foreign investors hopes a Pentagon-style $100 million hotel development near Taupo will pump $18 million a year into the local economy and create 500 jobs.

The proposed development, two kilometres north of the town, includes a 250-bed four-star hotel, 102 apartments and a conference centre with a capacity for 600 people.

The consortium, NLT Development – a group of 10 unidentified Kiwi and foreign investors – has lodged a resource consent application with Taupo District Council. It plans to build on a six-hectare site overlooking Lake Taupo and across the lake to Tongariro National Park.

The circular design, with green space in the middle, bears some resemblance to the five-sided Pentagon defence headquarters in the United States.

The ambitious investment has been welcomed by others in the industry.

"The more hotel infrastructure built in Taupo means more visitors will stay, more jobs will be provided and there are more opportunities for locals," Kathy Guy, general manager of Bayview Wairakei, said.

A source close to the project said Novotel or Grand Mercure, both part of the global 4500-hotel chain Accor Group, may run the complex.

Accor is known to have been searching for a Taupo site.

An economic assessment report estimated the development would add $18m a year to the local economy. About 500 jobs would be created during the 18- month construction, and about 420 jobs when the hotel was up and running.

Tourism contributes $164m a year to Taupo's $1.4 billion economy.

The report estimates the hotel will generate $20m annually. It says about $2.6m a year would be spent by guests shopping, using taxis, taking tours and eating out.

The planned conference centre would fill a gap in Taupo's large international conference market. Taupo plays host to 6 per cent, or 25,000 delegates, of New Zealand's annual corporate conference market at 17 centres.

This number is expected to increase to 40,000 if the development goes ahead.

The economic assessment report says the hotel would "ratchet up" tourism standards and enhance Taupo's tourism appeal and status to visitors.

It would increase the choice of accommodation available as well as competitiveness and efficiency with other hotels.

Taupo has several four- and five-star hotels, including the Bayview Wairakei, The Millenium and the recently opened Hilton Lake Taupo.

Room rates range between $110 and $450 a night.

- © Fairfax NZ News