The Grand Chateau Tongariro will close permanently from Sunday February 5.
The Chateau, located in the Tongariro National Park, has been in consultation with the Department of Conservation (DOC) regarding the renewal of its 30-year lease, which expired in April 2020.
As part of the hotel’s due diligence in preparing to renew the lease, it had specialists conduct site and seismic assessments as part of plans to renovate the building and surrounding infrastructure.
The most recent seismic assessment, however, found that underground shifts over time meant some of the hotel infrastructure no longer met current safety standards.
“This decision has also been influenced by other factors including the significant cost of ensuring long-term site safety from seismic risk, Ruapehu Alpine Lifts (RAL) falling into voluntary administration and related uncertainty over the future of the ski resort upon which the Chateau Tongariro Hotel depends, and off the back of recent poor snow season conditions and pandemic restrictions,” a spokesperson said.
Senior vice president commercial of the Chateau Tongariro Hotel’s parent company, Kevin Peeris, said it’s a “very sad day for our hotel family”.
“Surrounded by the Ruapehu, Ngauruhoe and Tongariro, and its history in Aotearoa New Zealand, it is disappointing for our hotel community that the Chateau Tongariro Hotel chapter will come to an end in February, despite initial plans to invest in its long-term future,” Peeris said.
He said although the hotel had been given the possibility of an extension to “undertake rectification works” it would’ve been too expensive.
To ensure the safety of those at the hotel, including its 36 staff, the decision has been made to close it.
Peeris said it was disappointing and sad that the iconic hotel would have to shut its doors “despite initial plans to invest in its long-term future”.
“The hotel has been given 25 years with the possibility of an extension of another 10 years to undertake rectification works, however the cost involved in these works, combined with other external factors such as the voluntary administration of Ruapehu Alpine Lifts and the poor snow season, and rebounding tourist numbers from the pandemic means continuing operations is not financially viable.”
Discussions are underway with DOC regarding the handover of the property.
The hotel said it was supporting directly affected staff.
Owners of the Chateau Tongariro Hotel and its sister hotel, Wairakei Resort Taupō, have confirmed they will continue investing in New Zealand, and the Wairakei Resort Taupō and its staff are not impacted by the closure.
