Hotel Indigo Auckland by IHG

IHG, which has 47 hotels in Australasia, has signed an agreement with property developers Ninety Four Feet to build Hotel Indigo at a cost of $250 million.

The tower will be mixed use, with residential apartments, restaurants and bars as well as the hotel.

New Zealand's continued growth as a popular travel destination makes Auckland an obvious choice for expansion, says IHG and Ninety Four Feet.

"Auckland is becoming recognised as one of the world's key gateway cities, and is consistently one of the top 10 most liveable in the world," says Dean Rzechta, the managing director for Ninety Four Feet Property Development.

Hotel Indigo will be built on land at 51 Albert Street. A heritage listed building at this address will be restored and incorporated in to the new hotel.

The project currently has consent to build as high as 131 metres.