A new hotel designed to address a chronic shortage of accommodation in one of New Zealand’s fastest growing tourist centres will open next year.

The new five-storey 256 bed pod hotel will be in Queenstown’s CBD and is thought to be one of the tallest planned for the area.

The new accommodation will be a mixture of pod-style and some private rooms with ensuites.

JUCY CEO Tim Alpe said the hotel will be aimed at a budget traveler but will also cater for families.

“The pricing is designed to meet the needs of the budget traveler, whether it's a backpacker or a family. Most of the pod units will be priced at around $45 with family rooms starting at $85,” he said.

Alpe said the hotel will include a new rooftop restaurant and bar with expansive views overlooking Lake Wakatipu.

It will be the third opened in the JUCY Snooze chain within two years following Auckland and Christchurch.

Alpe said in addition to the compact style of the accommodation, the pods will also feature unique technology which allows travelers to control their own stay.

Tourists will be able to check in, open and secure their rooms using a Smartphone app currently in development. Each pod will have a tablet where guests will be able to wirelessly manage their room, travel itinerary and purchase entertainment on demand.

Alpe said the hotel will be located in Queenstown's Camp Street, an area popular with tourists and is expected to open in October 2017 in time for the busy summer season.