Hilton deal to manage Kawarau Falls hotels

A recent photograph of the Kawarau Falls Station development, still under construction, which is to carry the Hilton brand. Photo by James Beech.
A recent photograph of the Kawarau Falls Station development, still under construction, which is to carry the Hilton brand. Photo by James Beech.
Hilton Worldwide's twin hotel management deal with Queenstown's beleaguered billion-dollar Kawarau Falls Station development has been greeted with caution by Penny Clark, Queenstown chairwoman of the New Zealand Hotel Council.

Approached for comment yesterday, Ms Clark offered a guarded reaction, saying the deal was "great news for the long-term viability of Queenstown as an international resort".

But she warned "the immediate future is going to be challenging for the whole town", given the fragile global economy, loss of long-haul visitors and the evolution of new tourist markets in Asia.

Despite her caution, Ms Clark applauded the timing of the announcement, which comes in the same week Air New Zealand and Jetstar announced more flights into the resort.

Hilton Hotels and Resorts global head Dave Horton said in a statement yesterday the package comprised a 178-room five-star hotel to be named Hilton Queenstown and a four-star hotel, featuring 98 one-bedroomed apartment-style rooms, to be known as the Kawarau Hotel, Managed by Hilton.

A firm date for completing construction is expected early in the New Year, but earlier this month Grant Graham, of Kawarau Falls' receivers Kordamentha, said the site was on deadline to be operational by March.

Queenstown Lakes District Council mayor Vanessa van Uden said the Kelvin Heights lakefront hotels would "definitely" create more jobs and would likely reduce unemployment figures by "increasing the opportunity for employment in the town".

"It's great news. It's really good to see they'll be operating there and to finally see activity on that site. It presents opportunity for us and we welcome the announcement from Hilton," she said.