Receivers find new operator

A "preferred operator" has been identified to operate the two stage 1 hotels at the billion-dollar Kawarau Falls Station development in Queenstown.

But receiver Grant Graham, of KordaMentha, said he would not name the operator until the deal was finalised.

In an email to the Otago Daily Times yesterday, Mr Graham said the receivers were working through commercial arrangements with the party.

"We are pleased with how the site is progressing as we enter the business end of the build," he said.

Stage 1, which includes a five-star hotel, a four-star hotel and three apartment buildings, had staggered completion dates, he said.

"The whole of stage 1 will be completed by August with a targeted opening date of September. Exact timing will be determined by completion of infrastructural work, reading etc," he said.

A 98-room four-star Quadrant hotel was originally due to open on the Frankton site earlier this year and a 177-room five-star Westin hotel had been taking bookings for a March opening.

However, the project was put in doubt when 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.

Work continued despite the two Melview companies owing $180 million to Bank of Scotland International.

The Quadrant is owned by Melview Developments.

Spokesman David Peach said it was up to the receivers who would operate the hotels.

The Westin label is owned by Starwood Hotels and Resorts.

Spokeswoman Alison Boyd said she could not say whether The Westin would be moving into the site, but confirmed the chain had stopped taking bookings.