In a Marriott International statement, CP Hotels chief operating officer Paul Richardson said it was proud to bring the first Marriott hotel brand to Rotorua.
He called it a “watershed moment” for the city as Marriott was one of the world’s most recognisable hotel brands.
Arawa Park Hotel Rotorua will launch as the Rotorua Marriott Hotel in late 2027 after a 12-month renovation. Photo / Megan Wilson
Chief executive of tourism promotion agency RotoruaNZ, Andrew Wilson, told the Rotorua Daily Post that Marriott’s entry was “a significant vote of confidence in the city”.
“Rotorua is performing strongly and there is clear demand for more quality, higher-end accommodation.”
Wilson said the Marriott investment would help meet that demand, strengthen Rotorua’s position as a “premium destination” and support visitor spending across hospitality, retail, attractions and experiences.
He said Rotorua had become one of Aotearoa’s “stronger-performing hotel markets”.
Average daily rates had increased 45% over the past six years, compared with about 18% nationally.
Demand was growing across domestic and international markets. The latest Infometrics quarterly economic monitor showed commercial guest nights in Rotorua increased 8.4% over the year to June, reaching almost two million, Wilson said.
“Having a globally recognised brand such as Marriott will strengthen Rotorua’s appeal to leisure visitors and the business events market, particularly at the premium end.”
Other hotels on the market
Arawa Park Hotel was formerly Rydges Rotorua before it rebranded in 2022.
The Holiday Inn Rotorua rebranded as the city’s current Rydges Hotel that year.
The Rydges Hotel on Tyron St is one of several Rotorua hotels put on the market this year, with others including Wai Ora Lakeside Spa Resort at Holden’s Bay and Copthorne Hotel on Fenton St.
Rydges Rotorua listing agent Peter Hamilton of CBRE said it had a party in exclusive due diligence for the asset.
“We received a positive level of interest out of the campaign, both from onshore groups and interest from overseas investors, which is good.”
Hamilton said Marriott’s expansion to Rotorua showed “a degree of confidence from local investors that there’s going to be some positive growth in that market”.
“We’re seeing demand growth out of key markets for Rotorua such as the Chinese visitors coming back, which have been largely absent for a number of years so that should flow through to strong demand.”
He said the prospect of direct flights between New Zealand and India under the Government’s Free Trade Agreement gave “a positive potential uplift” for demand.
“If there’s direct flights coming into, say Auckland from that part of the world, I think it’ll be a really big boost for the Rotorua market in particular.”
Broker Mark Rendell said Colliers was negotiating “strong interest” with a potential buyer for the Copthorne Hotel.
The four-storey Copthorne Hotel has 136 rooms, suites, conference areas, a restaurant and bar. It includes about 14,000sq m of undeveloped land that could be used for construction or expansion.
Wai Ora Lakeside Spa Resort is up for sale.
Wai Ora Lakeside Spa Resort, a 4.5-star facility with 30 rooms, a restaurant, day spa and conference area, is still on the market.
Bayleys agent Damien Keenan said the agency has had some interest, “though not at the level where the vendor was prepared to sell the property”.
Meanwhile, Kāinga Ora, which owns 2six5 on Fenton, formerly the Boulevard Motel, has completed demolition of the motel.
The then-Government bought the property in July 2021 for $8.1 million and controversially spent more than $11m on it, then $3m turning it into transitional housing accommodation.
Last year a bore that provided heating and hot water to the building broke.
The occupants had to move out and Kāinga Ora decided to demolish the buildings and sell the land.
A Kāinga Ora spokesperson said the site was expected to be listed for sale in the next few weeks now that demolition was complete.
Megan Wilson is a health and general news reporter for the Bay of Plenty Times and the Rotorua Daily Post. She has been a journalist since 2021.