Franz Josef floods: $30m claim by hotel insurance companies settled out of court

The Scenic Hotel Group's Mueller Wing surrounded by floodwaters after the Waiho River broke through a stopbank immediately behind the site in April 2016.

Brendon McMahon/LDR

The Beautiful Hotel Group’s Mueller Wing surrounded by floodwaters after the Waiho River broke through a stopbank right away behind the website in April 2016.

A $30 million claim versus the West Coast Regional Council by the insurance companies for the Beautiful Hotel Group following a flash flood that destroyed its previous Franz Josef hotel, has actually been settled out of court.

It followed flooding down the Waiho (Waiau) River in April 2016 which put through the Mueller Wing, personnel quarters, of the previous THC Hotel.

Westland District Council was called as 2nd offender in the insurance provider’s claim.

The local council’s 2021-22 yearly report stated the $30m claim was rejected and would be protected with the support of its public liability insurance provider.

Chairperson Peter Haddock on Wednesday verified that settlement had actually been reached throughout mediation recently.

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“It has actually been settled. It’s a private settlement, however that’s in between Westland District Council, WCRC and Scenic Group.”

Haddock stated he had actually not been made celebration to the figures of the settlement however it was possible the amount the council’s insurance companies had actually concurred would become revealed on the balance sheet.

The truth the case was settled was favorable for everybody, and especially for the Franz Josef neighborhood, which required to continue in protecting its future with flood security, he stated.

Westland mayor Helen Lash likewise invited the settlement and stated that ideally the goals and expect Franz might now with confidence continue.

“It’s been a long roadway, extremely attempting,” she stated of the disagreement.

The Mueller Wing has been left boarded up since the 2016 flood although Scenic Group announced in March it was committed to plans for a $50m rebuild.


The Mueller Wing has actually been left boarded up because the 2016 flood although Scenic Group revealed in March it was dedicated to prepare for a $50m restore.

“It indicates ideally we can now progress. This will ideally allow both the local council and ourselves to continue to do what we can to establish and secure what we can for Franz Josef.”

A different concern around Beautiful Circle’s rejection to provide approval as an afflicted celebration, for the $12.5 m of rockwork on the north bank of the Waiho, would likewise ideally now progress, Lash stated.

“I honestly think the factor for (Beautiful Circle) not approving approval as an afflicted celebration was to do with the court action.

“It’s been bloody hard on individuals in Franz due to the fact that they have actually been stuck in between a rock and a difficult location. What’s been has actually been. Let’s carry on collaboratively and do some great things.”

Scenic Group has actually been approached about the settlement however suggested through a representative that it “has no remark at this time”.

West Coast Regional Council president Heather Mabin stated the regards to the settlement were bound by a privacy contract: “I do not believe the information of the contract will be ever revealed regarding what the insurance provider settled on.”

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