Vacation outlines building plans

Press, 7 April 1979, Page 19

Vacation outlines building plans

PA Auckland i Vacation Hotels, Ltd. plans to develope its land at I Paihia, said the chairman (Mr J. 1. Sheffield) at the annual meeting. Latest developments in the tourist hotel industry indicated about an additional WOO rooms for Auckland, which would gradually solve 'the recent acute shortage, he said. I Developments confirmed I were, the announced Vacation plans to add 90 rooms lat Logan Park, the Trav- ; elodge plan to add 44 rooms, i and the Rose Park Motel 50 i rooms. The Townhouse, now j being built would have 117 rooms. I After that Vacation would re-develop its Rotorua Hotel — as with the Logan Park, the work to begin about mid-year.

1; “We fee! the time tor development of our land at , Paihia is rapidly approacht’ing, and our forward pianijning proposals are taking in j(this development. There were proposals “in ij varying stages,” for other - hotels in Auckland, said Mr I Sheffield. , Vacation’s mam concern > about new development ! arose from the present interest rates. At an establishl ment cost of §50,000 a room, - and interest at 13 per cent, s based on 70 per cent occu- - pancy meant just over §25 , per day for interest alone, ) he said. r “It will be seen that on I present costs substantial increases in the relatively low 1 level of hotel tariffs will be I necessary,’’ said Mr , Sheffield. i Vacation was doing its best to promote a rise in the

number of overseas visitors Australians were going farther afield, but. there was a substantia! increase of interest in this country from Japan, and the United States.

There was a continuing need for Vacation to send its own promotion-teams overseas, and in some cases establish offices or representation, which was being done.

Commenting on the record profit of $946,672 for the year to October 31, Mr Sheffield said me 11.7 per cent return on average shareholders funds as inadequate, having regard to the risks involved.

The major shareholder tn Vacation, Fletcher Holdings, Ltd, had lifted its holding from 20 per cent to 25 per cent of the ordinary capital said Mr Sheffield. Vacation intends to have a subsidiary controlling all properties, and another for operation of the hotels.

A shareholder unsuccessfully contested the moves — both approved from the floor — to increase the directors fee $5OOO to $2b,000 a year, and to make additions to the articles of association setting a retirement age of 70 for directors, and giving the board authority to pay a retirement allowance to non-executive directors.