Guests are being turned away from Auckland's luxury Westin Hotel after 93 rooms were decommissioned today.
Court action has been taken by the individual owners of units in the hotel who lease rooms to the hotel complex.
That has which has led to the termination of a number of leases.
Receivers of Lighter Quay Hotel Management, the company involved with the hotel, said the Westin will continue to operate but it will be at a reduced capacity.
That's seen some guests due to check in tonight, being moved to another hotel.
The decommissioning of rooms has resulted in the loss of 99 jobs.
Seventy seven of the hotel's 170 rooms, and other facilities including the spa, bar, cafe and conference facilities, will still be available to Westin guests and visitors.
Former Baywatch star Pamela Anderson and football legend David Beckham have both stayed at the hotel during trips to New Zealand.
"Our intention from the start was to keep the hotel operating, and we are pleased we have managed to do that, albeit at a reduced capacity from today," said receiver Michael Stiassny.
"However, we are disappointed that the court action and resulting reduction in the number of rooms, has meant full staff levels simply can't be sustained. As a result, there has been no option but to work through a redundancy process affecting 99 employees.
Stiassny said no reasonable offer was tabled by the unit owners to purchase the assets and therefore receivers took steps to commence an impartial mediation process to try to resolve the differences with unit owners.
"This was rejected out of hand by the unit owners."
Following the court ruling, the receivers successfully negotiated temporary lease arrangements which meant the hotel had until today operated at full capacity.
But negotiations to further extend these leases have been unsuccessful.
