Chow brothers ready for year ‘with bite’
A new hotel development, which was put on the backburner after the 2016 Kaiko¯ ura earthquake, is back on the cards.
Work has begun to transform the Wellington head office of property tycoons Michael and John Chow into a hotel.
In March last year, the brothers scrapped the plans in the wake of the November earthquakes, as Wellington was left with a shortage of good quality office space.
However, Michael Chow said with a booming tourism sector and a ‘‘severe shortage’’ of hotel accommodation, the brothers were moving forward with the original plan.
‘‘The previously-delayed 89 Courtenay Place hotel redevelopment is now under way, with completion expected at the end of this year,’’ Chow said.
‘‘We are working with a couple of international hotel chains. However, details remain confidential for the time being, with an announcement expected in the near future.’’
In early 2016, the brothers announced they were going to convert the prominent office building on Courtenay Place into a 230-room, four-star hotel.
In addition to the development, work on the brother’s Pullman Rotorua is also under way.
Work on the five-star hotel, which will convert an office building into a 130-room hotel, began in May last year.
Last year, Chow Group launched a hotel development division to oversee its growing involvement in the sector.
‘‘While we are a relatively new entrant to the hotel development sector, we have already secured projects to a total value of about $100 million in our first 15 months,’’ Chow said.
The company’s ability to negotiate with major hotel operators directly was seen by the sector as a ‘‘welcome change’’, he said.
‘‘We are aggressively pursuing new property acquisitions to service the hotel operator demand that is engaging with us.’’
The Chow brothers had another hotel project on the cards in central Wellington, though most of the details were being kept under wraps. It is understood the hotel would be built above the Wilson car park and the Capital Market site on Willis St.
Further details were due to be released in the middle of the year.
The Chinese New Year had started ‘‘with a hiss and a roar’’ for the brothers, Chow said.
‘‘The Year of the Dog will definitely be one with bite.’’
"While we are a relatively new entrant to the hotel development sector, we have already secured projects to a total value of about $100 million." Michael Chow
The brothers see themselves as major players in the property industry, with an aim of managing $1 billion of property by 2020.
Property remains the brothers’ core business, making up 90 per cent of their assets.
They also have interests in commercial property and strip clubs.