The new owners of a boutique Arrowtown hotel have left dozens of people stranded and potentially out of pocket, after suddenly closing its doors and selling the property.
People with pre-paid deposits, or pre-paid full tariff payments, for accommodation at the Arrow Hotel, have found themselves shut out and caught up in a fight between two sets of new owners and the old.
Dana Hemingway, who owned the hotel, claims when he sold it as a going concern to Arrowtown residents Mark Samways and Ken Wimsett, on September 13, he passed on to their company $40,156 in deposits for 63 forward bookings.
However, Mr Wimsett said they received a booking portal from Mr Hemingway, but it was "deactivated" shortly after, so they had no evidence of bookings, deposits or payments made.
He alleges Mr Hemingway deactivated the portal himself.
"We [were] going blind from the day after settlement."
Mr Wimsett said the situation was "very unfortunate".
As the vendor, Mr Hemingway had agreed to provide details of forward bookings, prior to settlement, as part of the sale and purchase agreement, but that had not happened, despite several requests, Mr Wimsett said.
He suggested people who were booked to stay contact his business partner Mr Samways, as advised on the hotel’s website.
Meanwhile, would-be guests who had pre-booked and pre-paid were being left in the lurch.
Queenstown Taxis driver Jesse Evans said he drove an Australian couple, who told him they had pre-paid for three nights’ accommodation at the Arrow Hotel, from the airport to their supposed lodgings.
On finding the hotel was shut, they then booked another Queenstown hotel instead.
"They said their travel insurance will cover them, but it’s ridiculous they’ve had to go through something like this," Mr Evans said.
In another example, three months ago Matakana couple Nicki and Greg Silks paid the hotel $1062 to stay for four nights next month to celebrate their wedding anniversary — they pre-paid in full to receive a 10% discount.
Last week, however, Mrs Silks was mortified when checking the hotel website to read: "The Arrow Hotel is sold and no longer operating for bookings and deposits".
The website directed her to either a website or to Mr Samways’ cell number.
On emailing vermontstreet partners.co.nz she was told by managing director Edward Sundstrum, whose company had now bought the property off Mr Samways and Mr Wimsett: "I purchased the property on a vacant possession basis".
"I have nothing to do with the hotel business, no access to any bank accounts or booking systems associated with the hotel business.
"Please contact Mark Samways — Arrow Hotel Ltd."
Mrs Silks said she then messaged Mr Samways, who confirmed the hotel had been closed.
"We have no visibility as to former bookings unfortunately. There are, however, other accommodation options in Arrowtown."
When her husband contacted Mr Hemingway, he quoted the sales contract: "The purchaser acknowledges there are forward guest bookings for the Arrow Hotel accommodation business which the purchaser agrees to honour and be bound by," Mrs Silks said.
Mr Hemingway said on the day of settlement he provided the real estate agent involved in the transaction with a ResBook calendar booking system, which he claims was then passed on to the new owners.
Mr Hemingway, in an email five days later, contacted ResBook to ask it to immediately block all new bookings.
He said technically the new owners should have taken charge of the ResBook calendar system in that timeframe, but that did not happen.
"My major concern is we’ve got a whole bunch of people whose plans are going to be spoiled."
