Big hotel considered uneconomic

Press, Volume CXI, Issue 32587, 22 April 1971, Page 1

Big hotel considered uneconomic

TraveLodge New Zealand, Ltd, says that costings and estimates for the building and running of a high-rise motor hotel in the centre of Christchurch have shown that such p hotel would not be profitable at present.

The general manager of the TraveLodge consortium (Mr D. W. Allen) yesterday confirmed the figure of 82 per cent for year-round occupancy mentioned by the Minister of Tourism (Mr Walker) in Christchurch on Tuesday evening. This occupancy, needed to make a profit on present costs and competitive tariffs, is regarded in the j hotel business as being belyond contemplation. TraveLodge insists that, in spite of the discouraging results of its assessment, it has not lost interest in the • idea of having a multi-storey hotel in Christchurch. “We

are still keen to run and direct a motor-hotel in Christchurch,” said Mr Allen. “This was reaffirmed at our last board meeting.” Speaking at the Auckland headquarters of the consortium, Mr Allen said there did not seem to be much hope of land costs or building costs becoming more favourable; nor was there much prospect of higher revenue. Tariffs needed to meet the present costs would be prohibitive, he said. A composite scheme for a motor-hotel might change the group’s thinking, he said. If suitable car parking were provided by, say, the City Council, this would make the economics of a motor-hotel more favourable. 1

The group’s plans for a hotel on the A.M.P. site in Cathedral Square foundered partly because of the problem of car parking.

“We are again looking at plans to expand the White i Heron. This has always been |on the cards and expansion there is not at the expense of a downtown hotel,” said Mr Allen. “We have sketch plans for an extra 40 or 50 tf

rooms. This does not mean much extension of the hotel's present facilities.” Future hotel development by TraveLodge will be planned in consultation with New Zealand Breweries, Ltd, which has recently joined the consortium in a financial partnership. Although these two hotel owners will cooperate in areas of common interest as a result of the partnership, the administration of their business will remain distinct.

Disapproval of the remark by the Minister of Tourism (Mr Walker) that he doubted if a high-rise hotel could be built in Christchurch in the near future was expressed by three Christchurch members of Parliament, according to the Parliamentary reporter of “The Press.”

Messrs B. G. Barclay (Christchurch Central), R. P. B. Drayton (St Albans) and T. M. McGuigan (Lyttelton) said that Canterbury residents, the City Council, those concerned with accommodating visitors for the 1974 Commonwealth Games, the tourist industry and the business community would be

astounded to learn from Mr Walker that the prospects of building additional high-rise hotel accommodation, so badly needed in Christchurch were bleak. “Mr Walker’s latest statement, from a Minister who last July said he was doing all he could to encourage a speedy decision on the building of a new hotel in Christchurch, can only be construed as an admission of failure. He has only himself to blame; for the complete frustration being felt by all who have been worried, and are still worried, over this problem,” they said. ~ “On October 13, 1970, Mr Walker said that hotels would be started in January this year. As recently as March 16, in reply to a question in the House from Mr McGuigan, Mr Walker said that there was no lack of interest in the provision of accommodation in Christchurch, and that he was aware of six projects in various stages of planning which, in total, could provide an additional 717 rooms, or approximately 1500 beds. “He said that he was con-

fident that sufficient of these projects will go ahead, and fairly quickly, and will not only assist in meeting the temporary demand generated by the Games, but also the continuing growth of tourism.

“Again, on March 31, Mr Walker, in reply to another question, said that the Government has stimulated investment in accommodation facilities through hotel fin•tce for selected projects, and that the response had been encouraging in the South Island and elsewhere. "The Minister is sadly mistaken •if he thinks Christchurch is going to be fobbed ; off with the proposed Arling- , ton motor inn. It is nothing but a glorified boarding ; house, and the Minister knows this. “Is it any wonder that American tourist authorities consider Christchurch to be I one of the black spots on the New Zealand tourist accommodation map?’’ said the , members.

"It is not good enough for the Minister of Tourism to keep blaming others. He is responsible.”