A Queenstown lakefront hotel is moving upmarket to meet growing demand from high-end travellers

The 227-room Holiday Inn Express will be transformed into a voco hotel - with upgraded meeting spaces and a new restaurant and bar.

Strategic director of hotel council Aotearoa, James Doolan says it's good news that the Government's investment in tourism - has led the private sector to invest in their assets.

He says if the voco achieves higher revenue per available room that's an increase in productivity for the hotel workers.