Hotel chain widening its horizons

By Chris Hutching

Friday 13th December 2002

Scenic Circle Hotels is on the acquisition trail again with the purchase of the 58-room Park Lodge Hotel in Paihia, to be renamed Scenic Circle's Bay of Islands Hotel.

This brings the number of hotels owned or run under the Scenic Circle brand to 17 following the opening last month of its $22 million Te Pania Hotel in Napier and the July purchase of the Blenheim Country Lodge.

The company is also on track to manage a new hotel at Kaikoura, which is being developed by Garth Bardsley, who recently received resource consent.

However, this is being appealed by a neighbour (the rival contender for new hotel accommodation in the town is Ngai Tahu).

Scenic Circle boasts its independence as the only significant New Zealand-owned chain. It is owned by Christchurch millionaire Earl Hagaman with an estimated fortune of $75 million, who flies around the country in his Cessna to check out his hotels. He is often accompanied by his son Damon and fifth wife Lani, who take a more active role in management these days.

Mr Hagaman is writing a book about his life and the series of providential happenings that led to him becoming wealthy.

He said yesterday that the new hotel would expand the presence of the company, which now manages hotels on the main tourist routes and in key resorts through a centralised marketing system, targeting inbound tourism and the corporate, sport and wedding sectors of the market.

Some of the hotel suites, such as in Napier's Te Pania Hotel, Queenstown's Aurum, and Christchurch's Fino Casementi, have been sold to private investors with Scenic Circle taking ownership of some of the rooms while managing the hotels. It owns its Fox and Franz Josef glacier hotels outright but in other cases has a management contract.

Most hotels are in the South Island but Scenic Circle has been increasing its interest in the past two years with management of the Airedale in Auckland, Alcamo in Hamilton and Princes Gate at Rotorua. Expanding its North Island activities means the hotel chain can cater for the entire travel itinerary of some travellers, particularly the high-volume coach market, as outlined on the company's web site.

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