Queenstown’s Tanoa Aspen Hotel and associated property holdings have been sold as part of a wave of recent hotel sales related to New Zealand’s booming tourism sector.
The 73-room hotel, with stunning lake and mountain views - together with 5,778 sqm of development land, four residential properties and two adjoining apartments - has been purchased by an established New Zealand based investor for an undisclosed sum.
Dean Humphries, National Director of Hotels for Colliers International, who marketed the hotel with Barry Robertson of Colliers Queenstown, says strong enquiry and a large number of offers were received from both local and offshore buyers.
“Although the sale price remains subject to confidentiality, pricing indications throughout the sales process were for offers over $15 million.”
Rohit Reddy, Managing Director of the New Zealand based Reddy Group which owned the hotel, says the timing was right to divest of this non-core asset.
“Given the current strong performance of the Queenstown market, it created a perfect time to divest this asset at optimal pricing, with the group also electing to focus on its extensive South Pacific hotel portfolio and range of commercial investments in New Zealand.”
New Zealand is experiencing its largest tourism boom in decades, with international visitor arrivals reaching 3.29 million for the year ended May 2016 - an annual increase of 11% compared to the same period in 2015.
A recent report commissioned by NZTE, Tourism New Zealand and the MBIE found that Queenstown was experiencing ‘severe capacity constraints’ during peak periods, with minimal new supply forecast over the short/medium term.
Humphries says that booming tourist numbers are pushing up occupancy and room rates to historically high levels, resulting in increasing profitability levels and asset values for hotels.
Robertson says the development land adjoining the hotel was one of the few remaining development sites available in Queenstown.
“Development land is currently in high demand and other sites have been quickly snapped up for record prices.
“While the new owner is looking to upgrade the hotel, they are still considering their long term options for the vacant land which could potentially add a further 100 rooms to the existing complex or be redeveloped for residential use.”