A Christchurch hotel building that has sat empty in the central city since the earthquakes will soon become a five-star Sheraton hotel as a result of a $150 million rebuild.
Mainland Capital and Russell Property Group have struck a deal with global hotel giant Marriott International to develop the former Rydges Hotel on Oxford Terrace.
First established as Noahs in the 1970s, the building was badly damaged in the 2011 earthquake.
Plans to restore the building stalled because of a long-standing legal dispute between building owners and insurers that ended up in the Supreme Court.
Mainland Capital director Ben Bridge told RNZ the Sheraton hotel plans were a major milestone for the city’s post-quake recovery.
“This has been a building that’s been a bit of a blight on the landscape for the 15 years since the earthquake. It’s been identified by the council and the public as something they would like to see resolved.
“To be able to bring that to fruition with our partners, I think it’s a pretty significant step for solving one of the problematic sites in the city.”
The 14-storey building would include 240 rooms or suites, a restaurant, a rooftop bar, event spaces and a gym when it opened in mid-2027.
The original building was established before the 1974 Christchurch Commonwealth Games and has had a number of high-profile guests over the years, including the Shah of Persia, Princess Diana, King Charles and Sir Elton John.
“It has a long 50-year history and I think that’s what’s really engaged the public,” Bridge said.
“I think there’s a really strong support for it from the public to have something done. If that could be the restoration of what was quite an iconic hotel in its day then all the better.”
An under-supply of hotels in Christchurch had also been identified during planning talks.
Bridge said an opportunity was identified by virtue of the neighbouring Te Pae Convention Centre having its busiest period during the slower winter months for the hospitality sector.
He said opening of One New Zealand Stadium and Parakiore Recreation and Sport Centre were also factors around forecast increases in accommodation demand.
“We’ve been waiting a long time to see that a hotel would come out of the ground in Christchurch. To be able to do this and hopefully set the bar relatively high, we hope others will follow,” he said.
Te Pae general manager Ross Steele said the hotel would be “a game changer”.
“[The convention centre] has led the way for New Zealand’s re-entry into the international convention market, this five star Sheraton hotel, opening in 2027, will take us to the next level.”
