Formerly the Punakaiki Rocks Hotel, it is located on the beachfront just south of the West Coast township.
Scenic Group chief executive Karl Luxon confirmed today: "We have a conditional agreement to purchase the property, and with various legal aspects to work through, on December 1 it will change hands to the Scenic Group."
After the coming summer season, the hotel chain would look at a high-level fitout as part of its 'Legacy Collection', the stable which includes the five-star Franz Josef hotel, Te Waonui Retreat.
Once bare paddocks, the hotel build began in 1999 and it was opened in 2001 by the Spence family.
Mr Luxon today paid tribute to them.
"The Spence family had an incredible vision for that piece of land when they built that hotel asset - it's not only an iconic West Coast property, it is also an iconic New Zealand property - and they have done a great job of developing and maintaining it.
"Visitors constantly marvel at the location."
The existing staff would transfer across with the hotel.
"Many of them are long term and we even have the second generation working there after their parents. The core staff are local people and in this sale, all staff are retained," Mr Luxon said.
"The reason for our investment in the West Coast is that globally, we are known for our West Coast presence. Offshore, we promote the West Coast as a destination before we promote our hotels.
"Covid has been painful for many regions but particularly the West Coast where tourism has been a large part of the economy, and it has caused us to rethink how to promote the West Coast.
"One visitor from Singapore said to me, 'I stood on the beach and just breathed air that nobody else had breathed'".
The purchase follows on from Scenic Group executive chairwoman Lani Hagaman's purchase of the Punakaiki Tavern just last month.
Mrs Hagaman also owns at Punakaiki the Beachfront Motels and a beachfront house.
Last year, Scenic Hotel Group marked 40 years, after its first hotel opened at Franz Josef in 1981.
It now has 13 hotels throughout New Zealand and the South Pacific.
- By Meg Fulford
