Sheraton consortium seeks partners

Press, 2 September 1983, Page 7

Sheraton consortium seeks partners

The Sheraton Hotel consortium is looking for financial partners before it decides to proceed with inter-national-class hotel projects in Christchurch and Wellington.

Partington Properties, Ltd, the company that owns the new Sheraton-Auckland Hotel, is inviting outside financial participation in hotels it has proposed for the two cities. The company is a partnership of Air New Zealand, the Development Finance Corporation, and Sheraton. “The new partners would be involved in the planning, construction, and initial commissioning stages, and then the property and partner would join the Partington consortium,” said the company’s chairman, Mr K. E. F. Grenney. A number of financial sources were being pursued, and he was confident that an appropriate partner

would be found. In Christchurch, the area between the Town Hall and the Salvation Army Citadel is being promoted as a hotel development site.

Sheraton would make an equity investment in new properties, as it has done with other international projects, such as the one in Auckland. Even though Air New Zealand and the D.F.C. would continue to participate in the consortium, some shareholding adjustment would be needed to accommodate a new partner, or partners. Depending on partnership interest, either the Christchurch or Wellington projects could proceed first, or they might start at the same time. The hotel consortium has found a Wellington development site that might be more suitable than one previously offered next to the

new Fowler Centre.

“Interest in building hotels in Wellington has now heightened with the making available of a prime citycentre site as a prospective hotel site,” said a consortium statement “The former Post Office site is located in the heart of the business and commercial sector, as well as being close to Parliament, with convenient transport links.” Mr Richard Hartman, general manager of the Sheraton-Auckland Hotel and vice-president of Sheraton Hotels in the Pacific, said there was “a clear need for an international-class convention hotel in Wellington.” A submission for development of the Wellington site would be made if results of a feasibility study were favourable. “To achieve growth in the New Zealand visitor industry, and attract segments of

the market beyond group tours and ’ corporate businessmen, we must have convention facilities in key centres,” said Mr Hartman. “The investment of Sheraton equity in New Zealand has reconfirmed the confidence we have in the growth of the visitor industry in this country.”

On September 22, a special Christchurch City Council combined district scheme hearings panel and street stopping panel will consider submissions on a plan to confirm commercial zoning for future stopped portions of Victoria Street and Chester Street West.

Objections to the proposed stopping will also be considered. The area that part of Victoria Street traverses could be a hotel construction site.

A special council meeting on September 26 will consider hearing recommendations.