Tourist hotels sale to proceed

Press, 22 July 1989, Page 8

Tourist hotels sale to proceed

Wellington reporter

The sale of the Tourist Hotel Corporation will proceed, with the Minister of State*Owned Enterprises, Mr Rodger, hoping all 14 hotels will be sold in one lot.

The sale, whith the Government first mooted in last year’s Budget, would benefit New Zealand’s tourist industry, said Mr Rodger.

The hotels were superbly placed for operators wanting to capitalise on New Zealand’s unique tourism possibilities. “But in many cases, the facilities need refurbishment or redevelopment to maximise their value. Provision of this new capital cannot be regarded as an appropriate priority for the Government.

“A strong private owner willing to develop the properties would be much better for the future of the New Zealand tourism

industry.” Mr Rodger said there had been world-wide interest in the chain, and formal expressions of interest would be called for in the next few weeks. The merchant bank, Fay, Richwhite and Company, Ltd, has been appointed to advise on the sale, which is expected to take several months.

Mr Rodger made it clear the Government would not sell any freehold interest in National Park sites . where the T.H.C. has facilities. “In National Park sites we propose to establish a leasehold interest with the Department of Conservation acting as landlord,” he said.