Hamilton: City's hotel stakes for sale

City's hotel stakes for sale

6 March 2012

The sale of Council’s stake in the Novotel and Ibis hotels will be progressed following agreement by Councillors at their recent meeting.

The Mayor and Councillors received a confidential report on the value of Hamilton Riverview Hotel Ltd at their 23 February meeting, and as a result agreed to starting the formal share sale process.

This will see Council issuing a share transfer notice to the two other stakeholders in the company – Tainui Group Holdings and Accor – with the shares sold to them if they were interested and the right price for Council was reached.

The sale of the shares was signalled in Council’s 2009 10-Year Plan, and it also flagged up in the current 2012 draft 10-Year Plan which is out for public consultation from the middle of this month.

Council has held a 41 per cent investment in the company since 1998. Returns from any share sales, if they were to go ahead, would be used to improve Council’s financial position.

ENDS

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