As I live in Wellington, I havne't stayed in these properties. The IC is probably the best hotel in Wellington.
The IC is in the middle of town and the HI is on the edge of the CBD, and at opposite end of town where all the nightlife is. You can walk from the HI to the IC in about 5 minutes. From what I can see, the IC is a 4 to 5 star hotel, while the HI is about a 3 to 4 star.
The IC has one of the better restaurants in Wellington, while the HI eating place is OK, but over-priced (even by hotel standards).
The HI only opened earlier this year, and they're STILL putting the final touches to it. There's also a huge construction site next to the HI. The HI is also located at the windiest (is there such a word?) street in Wellington.
I'd lean towards the IC...


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