Weighing options on Forsyth Barr Stadium precinct chic hotel



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Viability of a hotel next to Dunedin’s Forsyth Barr Stadium is set to be assessed in New Zealand Image: Forsyth Barr Stadium, Schwede66, CC BY-SA 3.0

The viability of a hotel sitting adjacent to Dunedin’s (city in New Zealand’s South Island) Forsyth Barr Stadium is set to be assessed but the city Councilors have been warned not to spill the beans as it could harm the multimillion-dollar project.

‘Otago Daily Times’ stated that the Dunedin Venues Chief Executive Paul Doorn informed that the Russell Property Group had been engaged to further develop concept options and to undertake a viability assessment for a hotel to come up within the stadium precinct.

The stadium hotel project is potentially worth tens of millions of dollars.

Doorn stated that the lack of a chic hotel was coming in the way of attracting events and a “missed commercial opportunity”.

The 30,748-seat Forsyth Barr Stadium is a multipurpose stadium in Dunedin, New Zealand. The fully covered stadium is also known colloquially as ‘The Glasshouse’ due to its resemblance to a horticultural hothouse.

Dunedin Venues is a specialist venue management organization offering complete event management services for events of any size.

The Russell Property Group provides extensive experience in development, project management and design across the property sector including new builds and large-scale conversions.

Averred Doorn, “The work is exploring the feasibility of seeking a private sector developer and operator for a hotel adjacent to the stadium.”
 

Leaking Secrets

‘Otago Daily Times’ further stated that the Councilors were warned about breaching confidentiality requirements following the controversial Dunedin city Councilor Benedict Ong identifying the firm Russell Property Group in an email to various parties including the news media.

The Dunedin City Holdings Limited (DCHL) Chairman Tim Loan said breaches of confidence placed the Council companies in a difficult position.

He said in an email Councilor Ong shared, “Our ability to engage openly and constructively with the Council relies on the assurance that the commercially sensitive information shared in good faith will be treated appropriately.”

The Dunedin City Council Chief Executive Sandy Graham said information had been provided to the Councilors in confidence.

In an email marked confidential in capital letters Graham said the DCHL or Dunedin Venues were doing “everything they can to ensure the project is not jeopardized”.

Dunedin (New Zealand)-based Dunedin City Holdings is the governing shareholder of a portfolio of subsidiary and associate investments providing strategic leadership and oversight of commercial and other assets held for the benefit of the City of Dunedin. The portfolio includes investments across multiple sectors including electricity distribution, forestry, utility services, venues management, rail, treasury, Dunedin’s stadium, and the Dunedin International Airport.
 

Stadium Hotel Project

Dunedin is in dire need of a sleek hotel and in this regard a proposal was floated in 2021 for the development of an internationally branded hotel, multistory carpark, expanded stadium front entrance, a sports bar, and commercial office space.

Doorn further informed that the DCHL and its subsidiary Dunedin Venues has been exploring ways to beautify and upgrade the Forsyth Barr Stadium precinct and make the stadium more attractive for the hirers.

Doorn said Dunedin was constrained for hotel accommodation, particularly when major acts came to town.

The Russell Property Group has been asked to explore whether a new hotel could help – “developed and operated by a third-party hospitality group within the stadium precinct” and with Dunedin Venues providing the site and principal events.

Doorn noted that the Forsyth Barr Stadium was within a shouting distance from the University of Otago and the Otago Polytechnic – “Together, they represent thousands of staff, tens of thousands of students and a combined economic and social footprint that shapes Dunedin’s identity.”
 

Key Question:

  • Will a swank hotel within the Forsyth Barr Stadium precinct help the venue to attract major acts and drive revenue?

 
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