Queenstown hotel breaks through decade-old record price
Novotel Queenstown Lakeside hotel has sold for a record price of more than $90 million – the single biggest hotel transaction since 2006.
The 273-room hotel bought by an established New Zealand hotel investor, was one of seven owned by US real estate investment trust Host Hospitality throughout the country.
“This sale marks a significant year for hotel transactions which have resulted in just over $290 million of hotels changing hands so far in 2015 - just shy of the previous peak in 2010, which saw nearly $300 million of transaction activity,” says Colliers International hotels national director Dean Humphries, who advised on the transaction.
The landmark sale follows the sale of Novotel Ibis Ellerslie Auckland for more than $55m – a record price for a non-CBD hotel in New Zealand.
The realtor is also marketing for sale the 200-room Ibis Wellington and 139-room Novotel Wellington, which are attracting strong interest.
“Both domestic and offshore investors are flocking to New Zealand to take advantage of the tourism boom with international visitor arrivals, recorded at 3.04 million for the year ending September 2015, up 8.6% compared to the same time last year.”
Hotel occupancy levels and room rates are reaching record heights right across the country, resulting in greater profitability and rising property values/
The softer New Zealand dollar and the country’s reputation as a safe travelling destination, are also expected to further contribute towards the country’s international appeal.
The Ministry of Business, Innovation and Employment forecasts visitor arrivals to reach 3.8 million yearly by 2021.
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