The proposal follows the council’s 2025/26 Annual Plan consultation, with the council signalling its intention to find a new operator for the resort to reduce its ongoing financial commitments, including maintenance and renewals, capital investment, and debt-servicing costs.
It comes after a report commissioned by the council which looked into 10 of the council’s major assets, including the resort, the National Aquarium of New Zealand, McLean Park, Napier Conferences & Events (at the War Memorial), Napier i-Site, Par2 MiniGolf, Napier Municipal Theatre, Ocean Spa, Bay Skate and the Napier Aquatic Centre.
The report found that the businesses were mostly unprofitable.
Napier Mayor Richard McGrath said selling Kennedy Park Resort and leasing the land would unlock the facility’s potential as a premier holiday park, while reducing the council’s financial liabilities.
He said the resort had always been a popular choice with Napier visitors.
“We believe an operator with broad industry experience and expertise will lift it to the next level.
“This proposal removes council’s financial risk from running the resort, while keeping an important tourist facility operational.”
He said it was a win-win proposal for residents and ratepayers.
If the proposal went ahead, Hampshire would operate the resort as a holiday park and not use it for any other purpose.
The initial lease term is 20 years, with an option for a further 10 years.
A council spokesperson said the lease allowed the council to buy Kennedy Park Resort back from Hampshire after 30 years if Hampshire decided not to renew the lease.
McGrath said, regardless of the outcome, the resort was still open for business.
The sale would mean Kennedy Park Resort’s employees would move to Hampshire (NZ) Limited, while keeping the same employment conditions.
Staff were being consulted about the proposal.
Set on 5.7ha in Storkey St, the region’s largest accommodation provider was established in 1937 by the Napier council and named after Hawke’s Bay pioneer Charles Kennedy.
The council is calling for feedback on the proposal and is holding a community drop-in at the Napier resort on Monday, October 12, from 12pm to 2pm.
Feedback is open until October 23.
LDR is local body journalism co-funded by RNZ and NZ On Air.