By PHILIP CHANDLER
Construction of a 61-room five-star Queenstown hotel, on the corner of Man and Brecon Streets, has been deferred due to the Covid-19-induced tourism slowdown.
Lead developer, NZX-listed Augusta Capital, announced the deferral in a statement last week.
The luxury $70 million hotel, to be operated by hotel chain Radisson Collection under a 15-year management agreement, was due for completion in early 2022.
Its ‘sunset’ completion date has been set for February, 2023.
Augusta says it acquired the site for $12.9m in 2018, though its ‘fair value’, as at March 31, was $9.9m.
It had also incurred $6.8m of “development expenditure” by the same date.
Development partner and consultant Kevin Carlin, who aggregated the site in 2017, says the hotel will still go ahead, “but we need to see when the [tourism] volume’s coming back”.
Three hotel consultants all say the market will take three to five years to get back to 2019 levels, he adds.
Carlin’s also developing a nine-suite, six-star $22m boutique hotel, Queenstown Views Villa, on Hallenstein St, due for completion in November next year.
That’s still on track, apart from a delay in excavation and retaining structure work, because it will be easier to fill, he says.
Augusta Capital, meanwhile, is also a partner in the Lakeview Queenstown joint venture.
It involves residential, hotel, hospitality and retail development on the former Man St camping ground site.