Hamilton City Council has declined a proposal by a Te Arawa company to build a multimillion-dollar hotel in the city's arts area.
Rotorua-based Te Arawa Group Holdings wanted to develop a $25 million hotel on a car park on Victoria Street.
The plan was for a 150-room hotel with a four-star rating.
Hamilton City Council says, while a new hotel would be positive for the city, it did not believe it fitted with the council's plans for the site, which is part of the city's art precinct and wants to see hotel development located elsewhere in the city centre. .
Mayor Julie Hardaker says the council and Te Arawa will work together on other investments and developments in Hamilton.
