Quest Apartment Hotels will demolish an 80-year-old building in the Tauranga CBD, making room for its latest development.
The new project is a three-storey 42-room apartment hotel and retail complex.
It will include retail shops, ground-floor car parking and two floors of short-term hotel units.
Mayor Greg Brownless said the project is important because Tauranga’s centre city hotels are currently operating at full capacity.
“This will give another opportunity for people to stay in the CBD,” Brownless said.
Quest Tauranga Central is scheduled to open in May 2019, pushed back over a year from its original plan to open in October 2017.
Quest Apartments NZ chief executive Steve Mansfield cited delays to funding as the cause behind the hotel’s postponement.