The chances of a stadium hotel getting built in Dunedin may not have been dashed by last week’s announcement of a planned hotel development in the central city. Distinction Hotels said on Tuesday it would take over Philip Laing House and neighbouring buildings, at the corner of Princes and Rattray Sts, and create a 4.5-star, 145-room hotel and conference centre, slated to open in 2028. Asked if a proposed stadium beside Forsyth Barr Stadium now appeared unlikely, Dunedin City Holdings Ltd (DCHL) chairman Tim Loan did not confirm this. “At a high level, the announcement regarding Philip Laing House doesn’t materially change the landscape for the stadium hotel concept,” he said. Another hotel in the city had been anticipated for some time “and the market dynamics that underpin the stadium precinct concept remain broadly the same”, he said. Mr Loan said the two concepts served different purposes and would likely target different segments of the market. DCHL is owned by the Dunedin City Council, which also owns the stadium. City councillor Russell Lund remained deeply sceptical about prospects for a stadium hotel. A three-star hotel there would have to “either defy financial gravity or be the recipient of very significant council largesse” to succeed, he said. “If there was a sustainable demand — not just for the 10-20 nights a year for major stadium events — a private developer would have done it by now,” Cr Lund said. SUPPLIEDCr Russell Lund. Photo: Supplied The Distinction group opted for the central city because that was what visitors preferred, he said. The stadium requested proposals from the market in 2021 about potential for a hotel. A proposal was floated for development of an internationally branded hotel, multi-storey carpark, expanded stadium front entrance, a sports bar and commercial office space. The council has spent more than $120,000 on developing a concept and design, in addition to money put in by the stadium and council company Dunedin Venues. Cr Lund said the stadium cost ratepayers millions of dollars each year “and there is no way council should be looking to fund or contribute to further development, especially when the outlook for major events is very constrained”. A report for councillors in March described the stadium as a strategic asset that played a significant role in the wellbeing of the community. “The attraction of events to the stadium delivers substantial economic and cultural benefits, enhances community engagement, supports local businesses and provides a wide range of recreational and entertainment opportunities.” In April, Dunedin Venues said the city was constrained for hotel accommodation, particularly when major events were on. This was a hindrance for attracting events and a missed commercial opportunity, Dunedin Venues chief executive, at the time, Paul Doorn said. 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, he confirmed. Mr Loan said on Thursday the feasibility work was still in progress. Any reassessment of the stadium hotel concept would occur in conjunction with the council once the feasibility work had been finalised and company boards had an opportunity to consider it, he said. Dunedin Mayor Sophie Barker said last week, the addition of a 4.5-star hotel “significantly strengthens the city’s accommodation offering and supports our continued growth as a year-round visitor destination”. Cr Christine Garey said the announcement from Distinction Hotels showed confidence in the city.
