A decision by Toitū Te Whenua Land Information New Zealand, released this week, said an Overseas Investment Act decision had allowed Continuum Hotel Ltd, an Indonesian-owned business, to buy three properties in Thompson St in Queenstown.
The price paid for the land was $4million.
Rosebank Road Medical Services Ltd was the vendor.
The applicant, and related company Coherent Hotel Ltd, are hotel operators which are owned by a parent company.
The applicant owns and operates the Novotel Queenstown Lakeside Hotel and Coherent Hotel Ltd owns and operates the Kamana Lakehouse Hotel, also in Queenstown.
The plan was to redevelop the land to construct up to 54 new studio rooms to be used as accommodation for staff employed at the Queenstown hotels.
"The development will enable the applicant to attract and retain staff by providing a long-term solution to the shortage of staff accommodation options in Queenstown," the decision said.
Consent was granted as the applicant met the investor test criteria and the investment is likely to result in the incidental residential use outcome.
Continuum Hotel Ltd director Tony Rose, of Queenstown, said, when contacted yesterday, no definite plans had been drawn up but it was a long-term solution to the accommodation squeeze for workers in Queenstown.
"We put workers in our hotel rooms for the short term but that is not a solution. We have to look long term," he said.
The company bought a hostel in Queenstown last year to house workers but it was not ideal, he said.
Many businesses in Queenstown were buying accommodation for their workers, he said.
Now the approval had been given to buy the land, feasibility plans would be drawn up. Costs for the build were not known.
Though the approval allowed for 54 units it may not necessarily be that big. Resource consent from the Queenstown Lakes District Council was also needed. About 180 staff work across the two hotels.
"There was three houses there and we could have used them but we have more options if we look at building.
"The rooms can be bigger and different sizes and have room for skis and bikes.
"The stress on these people to find a room is immense. Someone places an ad for a room and they will quickly get 200-300 replies. It is just scary."
Young people from all over the world and New Zealand were coming to work and play in Queenstown but they needed a place to stay.
