Taupo gets Hilton Hotel

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NUMBER TWO: Taupo is to get New Zealand's second Hilton Hotel with the US group set to take over management of the Terraces Hotel.

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Taupo is to get New Zealand's second Hilton Hotel with the US group set to take over management of the Terraces Hotel.

The Terraces Hotel, located near the centre of Taupo, is due to re-open as the Hilton Lake Hotel in the final quarter of the year. Hilton Hotels Corporation has signed a deal to manage it on behalf of Kiwi firm Triumph Capital.

The news comes at a time the tourism industry is feeling the squeeze from recession both domestically and internationally. The BNZ Capital-Business NZ Performance of Service Index (PSI) out yesterday showed service sector activity declined for the thirteenth month in a row during April.

BNZ economist Stephen Topliss said the tourism industry was facing an especially torrid time and was of fundamental importance to a broader recovery of the service sector.

Today the Mayor of Taupo, Rick Cooper, welcomed the Hilton announcement.

"I am delighted that Hilton has chosen Taupo as the destination for its second hotel in New Zealand. To have a truly global brand like Hilton in our destination will help to introduce Taupo to a wider audience," Cooper said.

Hilton's existing New Zealand hotel is located on Auckland's Prince's Wharf.

The $55 million Taupo project, whose funding has been arranged by Triumph Capital, will see the Terraces Hotel's capacity expanded to 149 rooms from the existing 113. Triumph Capital is described as a privately owned New Zealand advisory company.

Martin Rinck, president of Hilton Hotels Asia Pacific, said the existing hotel - opened in 1889 - would be upgraded to meet Hilton's requirements. New wings will be added to improve the meeting, convention and accommodation facilities.

Hilton Hotels Corporation, perhaps best known for socialite heiress Paris Hilton, operates more than 3,300 hotels worldwide.

According to the Companies Office website, Triumph Capital's directors are Brian David Fitzgerald, Graham Edward Jackson and Marcel Aubrey Lindale. Its shareholders are Emporio Trust Ltd, Vardon Investment Group Ltd and Wakefield Investment Trust Ltd.

- © Fairfax NZ News