New Zealand’s largest ever hotel transaction has been nominated for a major award to be presented at Asia Pacific’s leading hotel investment event.
The Hotel Investment Conference Asia Pacific (HICAP) recently announced the finalists for the 2020 HICAP Merger and Acquisition of the Year Award.
The award recognises the acquisition of a controlling stake in a portfolio of hotels in the Asia Pacific region.
Among the three finalists this year is New Zealand Hotel Holdings Asset LP, which recently completed the single largest off-market hotel transaction in New Zealand history.
The deal involved New Zealand’s $48 billion sovereign wealth fund (NZ Super Fund) investing into a $300 million plus portfolio of hotels established by one of New Zealand’s largest hotel owners, the Russell Group and Lockwood Property Group.
The transaction involved the 255-room Four Points by Sheraton Auckland, the 168-room Adina Apartment Hotel Auckland and the 263-room BreakFree on Cashel in Christchurch with the ability to also secure the QT Auckland when it is completed in Q4 2020.
“The transaction was the culmination of a 12-month journey that resulted in all three hotels remaining in New Zealand ownership.
“I’d like to congratulate NZ Super Fund, Russell Group and Lockwood Property Group for being among the three finalists for this prestigious award.”
Humphries says quality New Zealand hotels assets are rarely traded – even with the recent challenges of Covid-19 – with the majority owned by well capitalised, long-term domestic and offshore interests.
“When the Russell and Lockwood Groups were considering a long-term growth strategy for their hotel portfolio, the ability to partner with a core 100 per cent Kiwi-owned entity with similar objectives was a very appealing outcome for all involved.
“The joint venture also created a platform for the new entity to invest further in New Zealand’s tourism sector with its most recent acquisition of the 203-room Holiday Inn Rotorua.”
HICAP is Asia Pacific's largest running hotel investment event. The conference is to be held virtually this year with the winner of the award to be announced on October 22.