Augusta Capital has bought a $13.95million site on Man Street in central Queenstown.
It wants to build a five-star, five-storey hotel, featuring 47 studios, three corner suites, six suites, and one penthouse.
It will also feature a restaurant, piano bar and cocktail lounge, a 150-guest function room, and car parking.
The seller of the site and hotel plans is American property developer Kevin Carlin.
Augusta Capital managing director Mark Francis said locations for a hotel development in Queenstown did ``not come much better than this site''.
"The location is central Queenstown within walking distance of all the key sights and eateries in the Queenstown CBD while sitting in an elevated position which provides premium, uninterrupted views out to the Remarkables.''
The hotel will be part of a Tourism Fund Augusta is setting up, offering investors "brick and mortar exposure to the New Zealand growth story surrounding tourism and to capitalise on the acute shortage of hotel accommodation being experienced across New Zealand, with a focus on Auckland and Queenstown''.
"Tourism is hugely important to the New Zealand economy and infrastructure is essential in harnessing the benefits of growth in the sector. Augusta is in the process of finalising due diligence on a collection of exciting opportunities for what will be an unlisted fund.''
The fund will invest in existing operating hotels and develop hotels where an appropriate risk-adjusted return can be extracted for investors.
- Daisy Hudson
