Christchurch's Crowne Plaza Hotel is to be demolished, the Intercontinental Hotel Group has announced.
The group says the badly damaged building will not be rebuilt due to rising construction costs resulting from changes to Christchurch building codes.
Little has been known until now about the status of the hotel, other than that it was significantly damaged in the February quake.
Staff have been on full pay until now.
The news comes as Canterbury Earthquake Recovery minister Gerry Brownlee announced today nearly 1000 homes in the town of Kaiapoi have been red-zoned .
The Canterbury Earthquake Recovery Authority has also condemned Christchurch's Copthorne Hotel on Durham St.
The Millennium Hotel near Cathedral Square, while not condemned, was told it could not accept reservations until May 2012.