Nearly two-thirds of rooms in the Westin Hotel in central Auckland are closing, with the loss of nearly 100 jobs to follow.
The owners of 114 of the complex's rooms say the receivers, Korda Mentha, have rejected a proposal that would have kept the five-star hotel fully open.
A representative for the owners, Graham Wilkinson, says 114 rooms owned under individual unit titles will close on Wednesday night, leaving 77 rooms available.
A receiver, Michael Stiassny, says the closure comes as a result of court action by the unit owners that led to a termination of a number of leases.
Mr Stiassny says the receivers have done everything possible to keep the hotel operating at full capacity.
However, he says the reduction in rooms means they had no option but to make 99 employees redundant.
Mr Wilkinson says the move has potential to throw into disarray the plans of hundreds of guests booked for the 2011 Rugby World Cup.
