GOVT BACKS HOTEL

Press, Volume CVIII, Issue 31768, 27 August 1968, Page 1

GOVT BACKS HOTEL

(N.Z. Press Association)

WELLINGTON, August 26.

The Government has agreed to the construction of an 11storey 400-bed hotel in Wellington through its tourist accommodation scheme, but Government support for an extensive addition to the Grand Hotel has lapsed.

This was stated by the Minister of Tourism (Mr Thomson) who said tonight the

Government had agreed to guarantee a portion of the loan funds needed to finance the new hotel.

Commenting on plans published today concerning a proposed major extension to the Grand Hotel, Mr Thomson said he had informed the Grand Hotel Company last Friday that its application for Government assistance had lapsed and that the Government could only give financial assistance to one large hotel in Wellington. The Grand Hotel’s chairman- of directors (Mr T. Coltman) and the managing-direc-tor of Dillingham Transportation (N.Z.), Ltd (Sir William Stevenson) signed an agreement last week to go ahead with extensions to cost $5.5m.

Mr Thomson said that negotiations had been continuing for some months with a group which runs the White Heron Lodge at Kilbimie, and the.

Government had agreed to guarantee a portion of the funds needed to finance the new hotel.

He said this proposal for a hotel above the City Council parking building on the Terrace, would, along with the new Travelodge due to open on October 25, add 560 first-class beds to Wellington’s accommodation, almost equalling the number of first-class beds now available. Construction would start in the early months of 1969 if the plans of the promoters were achieved, he said.