The 132 room, four star Travelodge Hotel in Wellington is for sale.
Colliers International and Savills have been jointly appointed by Toga Group to market the premium Wellington property that is being sold by way of an international expression of interest closing Wednesday 23 September 2015.
Dean Humphries, National Director of Colliers International Hotels, says the Travelodge Hotel Wellington, subject to a new 15 year management agreement to international operator TFE Hotels (Toga Far East Hotels) under the Travelodge brand, will provide investors a strong yielding investment in one of the country’s most tightly held markets.
“The hotel will attract strong investor interest, both locally and offshore, as it is an exceptionally well-appointed property requiring no immediate capital expenditure and provides further growth potential in what is an improving market.
“There has never been a better time to own a hotel asset in New Zealand, with tourism demand running at record levels and with annual international visitors having reached almost three million people. This is up 7% - resulting in record occupancy and increasing room rates driving higher profitability and property values.”
Humphries says the hotel sector looks set to be one of the strongest key growth sectors of the New Zealand economy over the short to medium term.
“The falling NZ dollar is also anticipated to attract even more tourists to our shores in the next 12 months, and against a virtual hiatus of new hotel inventory, further pent up demand for existing hotel inventory is expected.”
Travelodge, located in the heart of the Wellington central business district, includes the 132 modern guest rooms, a restaurant and five conference and meeting rooms. It underwent an $11 million refit in 2009 when it was rebranded as the Travelodge Hotel Wellington.
Michael Simpson, Managing Director for Savills Hotels Australia and New Zealand, says with China now being New Zealand’s second largest visitor market (up 30% year on year), coupled with the Chinese government encouraging outbound investment, higher levels of enquiries are to be expected from China.
"The Wellington hotel sector is also one of the most stable markets in the country, with strong government and institutional revenue throughout the week that provides for strong long term sustainable growth.
“Travelodge Hotel has an excellent profile to all the key demand generators Wellington has to offer, adding to its appeal.”
The building, with a seismic rating of 100% of NBS, was formerly part of the Plimmer Complex, which also encompassed a 14,595 sqm office tower and carpark facility.
The components of the Plimmer Complex were subdivided into three separate freehold strata-title assets and the hotel represents the final offering following the recent sale of the office tower and carpark.