Whanganui District Council remains committed to attracting hotel developer
Whanganui District Council is still keen “to roll out the red carpet” for hotel developers and investors but has yet to attract a suitable party.
In May, the Chronicle reported property and development strategists Veros had been enlisted to source potential investors.
The council was also considering locations other than two buildings it owns – Wanganui Furnishers and Wakefield Chambers – as potential hotel sites.
At the time, chief strategy officer Sarah O’Hagan said there had been “constructive interest and engagement with interested parties continues”.
This week Whanganui Mayor Andrew Tripe said the push to bring a new hotel to Whanganui was “still alive”.
“We’ve got the door open and, eventually, it will happen.
“Whanganui is becoming an increasingly attractive place for the visitor sector.”
The council budgeted $200,000 for a hotel feasibility study through its 2024-34 Long-term Plan (LTP).
Terrace House on Wicksteed St went on the market last month, with Bayleys Manawatū-Whanganui director John Bartley saying there was scope for adaptive reuse, including as a hotel or serviced apartments.
Tripe said the council would be happy to talk to anyone who saw the property as a hotel opportunity.
“Our job is to try and make it work for them. That’s what’s happened around the rest of the country.
“Kaikoura has got one; there’s Invercargill, Whangārei, Palmerston North.”
Palmerston North’s 86-room TRYP by Wyndham in the refurbished post office building on Main St will open next month.
Bartley told the Chronicle that concept designs showed Terrace House could be fitted with 69 rooms.
“We’ve had a bit of interest from developers, but there are a few things to link up,” he said.
“In this case, they’ve got to buy the land and buildings, it’s got to be feasible in terms of fit-out, and there’s got to be an operator as well.
“But it’s certainly got location going for it. The Sarjeant [Gallery] is nearby and there is plenty of parking in the basement.”
Terrace House owner Hadleigh Reid said the idea of a hotel had been explored, with architects working on plans.
“Basically, it just cost so much, $10 million-plus to renovate,” he said.
“We were not in a position to take that risk.
“Around Covid-time, building costs were going crazy and interest rates were going up.”
Reid said many hoteliers leased buildings rather than owned them.
A hotel should be “driven by a successful chain that can back it”, rather than a standalone project, he said.
“A company that was doing well and didn’t need to make it work immediately could afford to come in and get things started, a longer-term venture.
“Or the council just backs it completely, does it and drives it.
“But I don’t think there’d be any appetite for them to borrow $20m and build a hotel.”
The council proposed in the LTP to finance and lead a $55m hotel and carpark project but that was scrapped following public consultation.
Bartley said there was little suitable bare land in the central city for a hotel, with complexities around retrofitting existing buildings.
“You’ve got heritage status on a number of them, and strengthening work may need to be done.
“If you want a prime location, you’ll need to compromise.”
Tripe said the council would not buy buildings for a hotel “but we’ll certainly roll out the red carpet to anyone that wants to develop and manage” one.
“We are missing out on significant opportunities for the visitor sector, whether it’s corporate, tourist, conference or events.”
A tender campaign for Terrace House runs until October 28.
Mike Tweed is a multimedia journalist at the Whanganui Chronicle. Since starting in March 2020, he has dabbled in everything from sport to music. At present his focus is local government, primarily Whanganui District Council.