Condo owners sue Westin Auckland, 110 guestrooms decommissioned

AUCKLAND, NEW ZEALAND About two-thirds of the guestrooms at The Westin Auckland Lighter Quay have been taken out of service after condo owners sued the hotel claiming they have not received promised profits.

The 170-key Westin is operating at “capacity” with just 60 guestrooms open, but is otherwise operating normally. The hotel, which is being managed in receivership by a firm called KordaMentha, has terminated the leases of the condos in response to the lawsuit.

The decommissioning of rooms has resulted in the loss of 99 hotel jobs.

The property was developed under a unit title structure, with unit owners promised a fixed return for three years. The developer, Melview, defaulted on its obligation to pay rent to the condo owners, forcing the company into liquidation