In March, commissioners granted consent to Lakes Edge Developments to construct and operate a 260-room, seven storey, four-star Terraces Hotel, with 73 car parks.
The company is linked to Queenstown developers Chris and Michaela Meehan.
Kawarau Village Holdings Ltd (KVHL) said in its notice of appeal it did not oppose the development of a "suitably scaled and designed hotel building" on the site, however, what was proposed and the activities it would generate - particularly in relation to parking and traffic - were "inappropriate".
The consented development did not promote the efficient and sustainable management of the natural and physical resources; was contrary to the objectives and policies of the operative and proposed district plans; had environmental effects which were more than minor; and was "inconsistent with good resource management practice", the appeal notice said.
Six specific appeal grounds were listed.
They included the "significant adverse effects" with regard to inadequate guest, staff and coach parking.
"The decision records that the proposed hotel complies with the parking requirements of the operative district plan.
"However, there are existing issues with parking in Kawarau Village. Notwithstanding past compliance with parking requirements, it is evident that supply does not meet demand.
"KVHL considers that, unless additional parking is supplied, the proposed hotel will create significant cumulative adverse parking effects."
It would also have negative effects on operational traffic movements and safety and "unacceptable congestion and delays" on Alpine Lakes Dr; did not provide sufficiently for pedestrians; and construction would also cause "significant adverse construction traffic effects".
Its submission also said the proposed hotel would be up to twice the height of existing buildings on KVHL's property and the combination of "continuous building frontage and height" would dominate, in particular, the Double Tree Hotel, opposite the site, which had 24 south-facing rooms with windows less than 11m from the proposed new hotel building.
The company also contended the proposed building would contain prominent "large areas of blank building facade" at its lower levels.
"The architectural design treatment proposed ... in particular the concrete panels ... are inappropriate and inconsistent with the established high quality and design of material used on KVHL's buildings and would create an adverse visual amenity effect."
KVHL has sought for the Environment Court to overturn the decision and decline consent.
