Hotel owner looks at library

International hotel chain Rydges Hotels and Resorts - with 40 hotels and 7200 rooms worldwide - has been scouting several properties in Dunedin for development, including the Dunedin City Library in Moray Pl.

"Several substantial parties", including from Australia and Auckland, have shown interest in the library and while no offer has been made, council property manager Robert Clark expected follow-up talks with some of the interested parties.

He said it was "very unlikely" the council would consider paying for a hotel retro-fit, having himself been involved in several in the past and the difficulties encountered.

While the library was "perfectly sited" adjacent to the convention centre and its more than $40 million redevelopment, the council was "not in the business of running hotels".

Rydges wants to buy an existing hotel or retro-fit another Dunedin building, for a minimum 100-bed four-and-a-half-star hotel, and on Thursday looked at the DCC's library building, the former chief post office in the Exchange and other properties with several estate agents.

The council is considering relocating its library to the lowest three floors of the former chief post office, plus extend-ing a new building over Bond St and the adjacent car park.

Australian-owned Rydges specialises in four-star or more hotels, with four hotels in Queenstown, Christchurch, Rotorua and Auckland, and wants to expand into Dunedin and Wellington, according to its general manager of hotel development in New Zealand and South Pacific, Chris Black.

"Dunedin is definitely on our radar.

This [visit] is just stage one of many stages before I go to the board in Sydney" with recommendations, Mr Black said.

Christchurch-based Mr Black played down his visit to Dunedin, saying the timeframe for a decision could be "sometime" next year and there was as yet no budget range set for purchasing and outfitting a building.

When asked about the potential of the DCC library building, he would only say that while is was "an excellent location . . . there would be a lot of work to do".

He rejected speculation the council's administrative civic centre was also part of any sale package, saying it was not included in the visit.

Mr Clark also ruled out any sale of the civic centre, saying he was not aware of any such proposal.

Mr Black believed that while Dunedin, like elsewhere, would be a competitive market, there still existed an opportunity to provide four-and-a-half-star accommodation.

Established in 1988, Rydges is the hospitality division of entertainment, hospitality and leisure organisation Amalgamated Holdings Ltd, whose other hotels are in Australia, the United Arab Emirates, the United Kingdom and Fiji.