Hilton eyes new site on waterfront

BY MATT CALMAN AND MIKE WATSON

One of the world's biggest hotel chains is determined to build a luxury five-star hotel on Wellington's waterfront, saying the city is a strategic asset.

Hilton Hotels announced it was trying again in the capital as it unveiled plans for a $55 million redevelopment of the 120-year-old Terraces Hotel in Taupo yesterday.

An earlier attempt to build a Hilton on Wellington's Queens Wharf was scuppered by the Environment Court last year.

A company spokeswoman confirmed to The Dominion Post that sites had been investigated in central Wellington, including along the waterfront, and there was a specific site in mind.

Negotiations were well advanced and an official announcement would be made before the end of the year. Sites were also being considered in Christchurch.

Positively Wellington Tourism chief executive David Perks said the Intercontinental and Museum hotels were of a high standard, but added a five-star Hilton would be a boon to the tourism sector.

"Having the Hilton brand will send a message to customers around the world that Wellington is somewhere serious as a destination.

"There is also a loyal following among business travellers who only stay at the Hilton, and at the moment we're missing out on that." Mr Perks would not speculate on sites for the hotel but said the central city's compactness meant anywhere downtown would work.

Wellington Regional Chamber of Commerce chief executive Charles Finny agreed that a Hilton Hotel would provide a "positive" boost for the city's economy. "[Some] people would like to spend more so it seems absolutely crazy that we can't satisfy this demand."

Plans for a $45m Hilton Hotel on the dilapidated Queens Wharf outer-T endorsed by film-maker Peter Jackson were sunk in March last year when the Environment Court overturned its resource consent.

Hilton Hotels manager Ashley Spencer said the court decision had been disappointing but "strategically the city is still very important to us".

"We have got to be there."

Wellington Mayor Kerry Prendergast said she was happy the hotel chain had not abandoned the city.

"The good news is they're still keen on Wellington because we need a five-star hotel."

Wellington Waterfront chief executive Ian Pike said discussions had taken place with the Hilton developers since last year's court decision.

"We're absolutely keen on having a hotel on the waterfront. We've got a number of locations that may suit."

Mr Spencer said the Hilton Lake Taupo featuring nearly 150 rooms, suites and apartments, a conference centre, restaurants and bars was due to be completed by mid-2010.

A Hilton hotel in Auckland has been operating since 2001.

WHERE WILL IT GO?

Potential waterfront sites:

* Kumutoto north of Meridian building and Queens Wharf. Earmarked as a definite site for future development by Wellington City Council.

* Watermark site above the old Rialto cinema on the corner of Taranaki and Cable streets. Site for a $200m apartment development that stalled due to lack of funds.

* Overseas Passenger Terminal earmarked for residential and retail development by Willis Bond. A $100m proposal to rebuild the terminal is awaiting an Environment Court decision.

* Taranaki St Wharf touted as a site for a Maori wharenui to be built by the Wellington Tenths Trust.

- © Fairfax NZ News