SkyCity is paying $16 million for a big site in Queenstown for a new five-star hotel.
The Overseas Investment Office has approved SkyCity's purchase of 1.015 hectares of land at 633 Frankton Road, Queenstown from Passion Cove.
That company's directors and shareholders include Queenstown real estate agent Kelvin Collins and businessman Bob Perriam.
The land is about half way between the tourist town and Queenstown airport at Frankton.
The OIO decision document said SkyCity's was an investment in sensitive land.
It intended to use the land for a five-star hotel that would complement its existing entertainment facilities in Queenstown and help attract international visitors to Queenstown.
The investment was likely to benefit New Zealand through the creation of hospitality jobs, additional investment for the hotel, and increased export receipts from high net worth international visitors.
SkyCity owns Queenstown's two casinos in the centre of town at Steamer Wharf and at Beach St. They contributed 1 per cent of its nearly $1 billion turnover last year.
A burgeoning number of hotel rooms are being planned and under construction in Queenstown by various developers.
They include a second Holiday Inn near the airport to be run by the world's largest hotel operator IHG, and completed in two years.
SkyCity's other main hotel developments include a Horizon hotel at its Auckland convention centre development, and expansion in Adelaide.
It is also making progress on its Hamilton casino hotel plan.
Five per cent of SkyCity's $1b revenue and $169 million profit in 2018 came from its hotel businesses, 38 per cent from electronic gaming machines, 25 per cent from table games, with the balance from other forms of betting.
Tourism Observer
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