The Holiday Inn Rotorua is due to be refurbished and rebranded as Rydges Hotel from July 1 under a new operator.
The property is part of a portfolio of hotels owned by NZ Hotel Holdings – a partnership between NZ Super Fund, The Russell Property Group and Lockwood Property Group.
Other hotels in the portfolio are Four Points by Sheraton and Adina Apartment Hotel in Auckland, QT Auckland, Rydges Wellington, BreakFree Hotel in Christchurch and Sofitel in Queenstown.
The Russell Property Group manages the portfolio on behalf of the partnership.
In a written statement, Russell Group chief executive Brett Russell said Holiday Inn‘s contract to operate the hotel expired in February 2021.
A market process to establish a new operating contract has been delayed due to Covid-19.
Over the past few months, Russell Property Group has issued a request for proposal to establish a new operating contract for the hotel, he said.
Russell said hotel operator Event Hospitality and Entertainment, which operates Rydges, QT and Atura Hotels, and JUCY Snooze, has been successful and will operate the property as the Rydges Hotel from July 1 following its renovation.
He said the partnership was grateful for Holiday Inn’s success over many years and for participating in what was a “very competitive” process.
“We have been fortunate to have a number of excellent operators looking to operate this property, and although we have decided to make a change, we are confident that it will be a positive step for the hotel.
“We are working with all parties to ensure a smooth transition, including our desire to retain all of our current staff at the hotel,” he said.
Russell said the existing Rydges property on Fenton St will be rebranded as a standalone hotel under the “Independent Collection” by the Event brand, he said.
“Our partners at Event are experienced hotel operators with a proven track record
record as our operational partners in QT Auckland and Rydges Wellington.
“We are confident that the transition can occur with no disruption to operations and no disruption to an attractive offering for Rotorua visitors and hotel users.”
The NZ Super Fund’s director of direct investments, Hishaam Mirza, said the establishment of a new operating contract for his Rotorua hotel offered “exciting opportunities” for the domestic tourism sector.
“This property remains a vital part of the tourism infrastructure, especially now that international tourism is returning to New Zealand.
“We are confident that the new operator will fit well not only with this transaction, but also with the high-quality regional assets in this portfolio.”
Event Hotels and Resorts managing director for New Zealand operations Simon White said
the team was excited to take on this new ownership.
“We look forward to bringing a fantastic new Rydges offering to Rotorua that can be enjoyed by locals, Kiwi travelers and international visitors alike.
“Rotorua is such a special place and we are delighted to once again partner with NZ Hotel Holdings to bring quality accommodation, food and beverage and conference options to the area.