A part of New Zealand's sporting history is soon to be replaced with work about to get underway on a new luxury hotel at the former base of Team New Zealand.

The former base in Auckland's Viaduct Basin will be the site of a $200 million five-star Park Hyatt Hotel.

Work on the hotel is due to start shortly, after the team moved out of its home of 18 years last month, relocating to the former base of Luna Rossa at Silo Park.

It was based on the waterfront site for 18 years, including during its successful defence of the America's Cup in 2000.

Panuku Development Auckland chief executive John Dalzell said the hotel is latest stage in a major redevelopment of the city's waterfront.

"The whole Wynyard Quarter itself is a mix of both marine industrial fishing, public open space and mixed use. It's being developed by a Chinese investor/developer in partnership with Hyatt International."