Hotel bookings halt as opening uncertain

The five-star Westin hotel may not be opening at the billion-dollar Kawarau Falls Station Development in Queenstown.

The Westin label is owned by Starwood Hotels and Resorts.

Spokeswoman Alison Boyd confirmed the chain had stopped taking bookings for the beleaguered Queenstown site.

"Starwood, as operator of the hotel under an operating services agreement, is unable to continue taking bookings for the hotel at this time. We will update our valued customers as to the outcome of the receivership, and the future of the resort, when it is known," she said.

The hotel had been in limbo since two companies associated with stage 1 of the development, Melview (Kawarau Falls Station) Investments Ltd and Melview (Kawarau Falls Station) Development Ltd, went into receivership in May.

Hawkins Construction is contracted to build the 177-room Westin Queenstown, which was supposed to be the first of four hotels to open at the Kawarau Falls development.

It is understood stage 1, including the Westin and Quadrant hotels and apartment complexes, is due to be completed by April.

The Quadrant is Melview Developments' own hotel chain.

Receivers Korda Mentha allowed work to continue despite the two Melview companies owing creditors more than $144 million, including $117 million to Bank of Scotland International, which called in the receivers.

New Zealand Hotel Council Queenstown chairwoman Victoria Shaw said she had heard both the Westin and the Quadrant were pulling out of the site.

"The contracts they had have expired so they have the right to pull out. My understanding is they are not going in there," she said.

The 98-room four-star Quadrant hotel was originally due to open earlier this year and the Westin had been taking bookings for a March opening.

Ms Shaw said the receivers were now looking for an alternative hotel chain to operate at the site.

She was confident the receivers would find one.

However, Ms Shaw said stage 2, which includes an InterContinental hotel and 1000-seat conference centre, needed to be completed.

It was unclear whether stage 2 would proceed.

Hawkins Construction, which is building the Westin Hotel, referred all questions to the receiver.

Receiver Brendon Gibson did not return calls.

Melview spokesman Chris Simpson did not return calls.

Rilean Construction is contracted to build Reserve and Central South, which are stage 1 apartment complexes.

Director Stephen McLean said stage 1 was progressing well and was due to be completed by April.

The apartment interiors were "well advanced", with carpet being laid.

He declined to comment on whether the Westin or Quadrant were still earmarked for the site.

The 6.4ha Kawarau Falls development was due to have four hotels, 1100 units and 13 buildings, boulevard-style streets, restaurants and parks, when completed in 2011.