A large 200-room hotel in the heart of the capital has come to market.
The Ibis Wellington at 153 Featherston Street, Wellington is being marketed for sale exclusively by Colliers International New Zealand Hotels Division. The 200 room, 3.5 star Qualmark-rated hotel, on the corner of Featherston and Panama Street in the heart of the CBD, will be sold by way of International Expression of Interest closing 4pm, Tuesday 1 December 2015.
Dean Humphries, National Director of Colliers International Hotels, expects strong interest in the property off the back of a period of exceptional growth in the tourism sector and strong investment demand.
“The Ibis is one of New Zealand’s best performing mid-market hotels, and there has never been a better time to own a hotel in the country,” he says.
Humphries cites statistics from the latest Colliers International Hotel Market Snapshot showing significant improvements in trading conditions across the key hotel markets in the country, driven by record in-bound visitation levels, and a tightly constrained short-to-medium term supply pipeline.
“The hotel benefits from its strategic location in the heart of the Wellington city centre, with many of the city’s key demand drivers located within walking distance to the hotel,” says Humphries.
The property is close to Lambton Quay and walking distance to Parliament, TSB Arena, Westpac Stadium and Te Papa Museum.
The Wellington hotel sector is performing at unprecedented levels with occupancy now sitting at circa 77% with average room rates in excess of $150, says Humphries.
“Whilst traditionally one of the most stable markets in the country, the Wellington market has over recent months benefitted from the buoyant market conditions, with revenue per available room (RevPAR) growing 8.0% to $117 for the year ending September 2015.
“The timing is now right to offer this quality asset to the market.”
Humphries says strong tourism sector growth is anticipated to continue into the foreseeable future with international visitation numbers to New Zealand showing no signs of slowing down after reaching three million annual visitor arrivals for the first time back in July.
“The falling New Zealand dollar and the country’s growing reputation as a safe tourism destination are also driving factors for further improvements in room rates through the increasing number of visitors visiting the country coupled with key markets trading at or close to capacity.”
Humphries anticipates a record price for the property, based on pricing trends observed from recent transactions including Hotel Grand Chancellor Auckland Airport, Kingsgate Hotel Wellington (now the Thorndon Hotel Wellington by Rydges) and the Novotel and Ibis hotels in Ellerslie, Auckland.