HIlton Queenstown's owners are appealing to approval of a new hotel in the area.

The owner of Hilton Queenstown and the DoubleTree Hotel has appealed the construction of a new hotel in Kelvin Heights.

Lakes Edge Developments was granted commissioners’ consent in March to build and operate the seven storey, four-star, 260-room,  Terraces Hotel.

Kawarau Village Holdings Ltd (KVHL), the company filing the appeal, has said it does not oppose the design of the new building but instead has concerns with parking and traffic issues that the new hotel will create.

“There are existing issues with parking in Kawarau Village. Notwithstanding past compliance with parking requirements, it is evident that supply does not meet demand.” said Kawarau Village Holdings Ltd in its notice of appeal.

The consented hotel would be twice the height of existing buildings in the area and would obscure the view of surrounding buildings such as the DoubleTree Hotel, which sits opposite the site and has 24 bedrooms with windows facing the new building less than 11 metres away.

KVHL has reached out to the Environment Court to overturn the decision and deny the hotel’s consent.