Luxury Carlin Hotel: $45 million in debt

by Kim Bowden - May 07, 2024

The first receiver's reports for the companies behind the luxury Carlin Hotel reveal more than $45 million of debt, and a deal underway to sell some of its assets.

Carlin Hotel Property Management Limited and Queenstown Views Villas Limited were placed in receivership in February, leaving some workers at the touted 'six-star' accommodation out of a job, and out of pocket.

A report for each company by BDO's Dianna Matchett and Colin Gower, appointed receivers by principal debtor Pablo (Aust) Pty Limited, was released on May 3.

Kevin Carlin died suddenly at the Carlin Hotel in December, just months before the companies behind the luxury accommodation were put into receivership (Image: File/supplied).

Queenstown Views Villas, which owns the property, owed $28.3 million to Pablo at the time the receivers stepped in, while the remainder of its $30.8 million debt was to unsecured creditors.

The company also had assets worth $26 million, some of which the receivers reveal they are attempting to sell.

"We are currently in the process of realising the Company’s business and/or assets through a formal confidential sales process," they say in their report.

Meanwhile Carlin Hotel Property Management Ltd, which is contracted to operate the hotel, owed $15.3 million at the time of liquidation - $12.4 million of it to Pablo, $317,000 to Inland Revenue, and $62,000 to employees, although $28,000 of the employee debt was paid out for pre-receivership wages "in order to maintain hotel operations".

In their report, the receivers say since the opening of the hotel in April 2022 the company "has sustained significant trading losses and cashflow constraints which have impacted its future viability".

Mr Carlin died at the hotel in December aged 69.

Staff have told Crux his body was discovered after several days in one of the units.

The cause of his death is unconfirmed and is being investigated by the coroner.

Last year, before his death, Mr Carlin had attempted to sell the building and the land it sits on, reportedly with a $35 million asking price.

The hotel, on Queenstown's central Hallenstein Street, continues to accept guests.

It includes nine units, each with private spas on private balconies overlooking Lake Wakatipu.

Main image (File/supplied): Despite its precarious financial predicament, The Carlin Hotel on Queenstown's central Hallenstein Street continues to accept guests.


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