PARNELL LODGE FIRE UPDATE: OWNERS RECEIVED $22M IN EMERGENCY HOUSING GRANTS | WATCH

The proprietors of several motels in Auckland, including the fire-damaged Parnell Lodge, received over $22 million in emergency housing grants. Suresh and Seema Chatly, Auckland-based entrepreneurs, had previously operated nine motels in the city. The Herald attempted to reach out to them and discovered their association with City Garden Lodge, a backpackers’ hostel on St George’s Bay Rd. Suresh Chatly, the sole director of Chatly Group Ltd, which operates the motels, explained that they transitioned to emergency housing during the pandemic as a means of financial survival, though they later reverted six of their nine properties to tourism. Over a six-year period from 2017 to 2022, government records show they received the aforementioned grants.

The current number of motels owned by the couple remains unclear. However, City Garden Lodge is not registered as an emergency housing supplier, according to a Ministry of Business, Innovation and Employment (MBIE) spokesperson. The property on St George’s Bay Rd is owned by another company, Ganpati Holdings Ltd, where Suresh Chatly serves as director and both Suresh and Seema Chatly are shareholders.

Fire at the City Garden Lodge in Parnell. Photo / Frank Mair

Investigations into the recent fire at City Garden Lodge are ongoing, with authorities examining the cause. Deputy Auckland Mayor Desley Simpson noted that the building was scheduled for a warrant of fitness check, having previously passed checks in August and November. However, issues were identified last year, including non-compliance with doors, damaged exit signs, and slippery outside stairs. These issues were reportedly rectified, leading to the building’s compliance and audit clearance.

Witnesses reported disturbances preceding the fire, with one neighbor recalling a confrontation involving three men, culminating in one brandishing a knife. Complaints about disruptive behavior and threats from lodge residents had been lodged with the property owners for over a year, with minimal response. Additionally, neighbors expressed concerns about the lodge’s residents, speculating about a high proportion of parolees and individuals facing adversity. The fire itself was described as dramatic, lighting up the sky almost instantly.

Fire and Emergency attend the fire at the City Garden Lodge in Parnell. Photo / Frank Mair