Dunedin Venues chief executive Paul Doorn said last night the Russell Property Group had been engaged to further develop concept options and to undertake a viability assessment for a hotel within the stadium precinct.
"The work is exploring the feasibility of seeking a private sector developer and operator for a hotel adjacent to the stadium," Mr Doorn said.
Involvement of the Russell Property Group was confirmed after controversial Dunedin city councillor Benedict Ong identified the firm in an email to various parties, including news media.
This led to councillors being warned about breaching confidentiality requirements.
Dunedin City Holdings Ltd (DCHL) chairman Tim Loan said breaches of confidence placed council companies in a difficult position.
"Our ability to engage openly and constructively with council relies on the assurance that commercially sensitive information shared in good faith will be treated appropriately," he said in an email Cr Ong shared with the ODT.
Dunedin City Council chief executive Sandy Graham said information had been provided to councillors in confidence.
In an email marked confidential in capital letters, Ms Graham said DCHL or Dunedin Venues were doing "everything they can to ensure the project is not jeopardised".
Cr Ong shared the email with the ODT 11 minutes later.
The ODT has previously reported the stadium hotel project is potentially worth tens of millions of dollars.
A proposal was floated in 2021 for development of an internationally branded hotel, multistorey carpark, expanded stadium front entrance, a sports bar and commercial office space.
In a statement yesterday, Mr Doorn said DCHL and its subsidiary, Dunedin Venues, had been exploring ways to enhance the stadium precinct and make the stadium more attractive for hirers.
Mr Doorn said Dunedin was constrained for hotel accommodation, particularly when major events were on.
This was a hindrance for attracting events and a missed commercial opportunity, he said.
The Russell Property Group had been asked to explore whether a new hotel could help — "developed and operated by a third-party hospitality group within the stadium precinct" and with Dunedin Venues providing the site and principal events.
Mr Doorn noted the stadium was within walking distance of the University of Otago and Otago Polytechnic.
"Together, they represent thousands of staff, tens of thousands of students and a combined economic and social footprint that shapes Dunedin's identity."
Russell Property Group
The Russell Property Group is described on its website as providing extensive experience in development, project management and design across the property sector, including new builds and large-scale conversions.
"Predominantly holding properties long term and primarily in the commercial, hotel and hospitality sectors, we continue to look at new opportunities with private or public partners that allow us to diversify and expand our holdings throughout New Zealand."
Its projects have included QT Hotel Viaduct Harbour on Auckland’s waterfront, Four Points by Sheraton in Auckland, Rydges Wellington and the Sofitel Queenstown Hotel & Spa.
