54 suites and apartments on a prominent 4,331 sq m site
A highly profitable accommodation business is for sale in sought-after Queenstown, giving investors a chance to capitalise on New Zealand’s ongoing tourism boom.
Garden Court Suites and Apartments comprises 54 suites and apartments, with a variety of one- and two-bed studios and two-bedroom units to capture all levels of the market.
The business for sale has a long lease on 41 Frankton Road, which comprises the 23 suites, and long-term management rights over the 31 individually owned apartments at 3-7 Adelaide Street.
Colliers International Queenstown has been exclusively appointed to market the business for sale by negotiation.
Broker Steve McIsaac says it is a superb opportunity for accommodation managers and hotel operators to secure rooms in Queenstown’s booming tourism market.
“This long-established accommodation business occupies a prime Queenstown location, only four minutes’ walk to the central shopping district.”
McIsaac says recent tourism figures show continued growth in the South Island, with guest nights up 6.3 per cent for the year ended November 2018.
“International visitors to New Zealand over the same period totalled 3.85 million – up 4.6 per cent on the previous year.
“More tourists means greater revenue, with visitors spending $2.31 billion with regional tourism operators in Queenstown in the year ended October 2018 – up 10.2 per cent on the previous year.”
The business for sale is currently run by its Christchurch-based managing owner, and employs an on-site manager, reception, housekeeping and maintenance staff.
Garden Court Suites and Apartments manages bookings through its own website, as well as third party sites such as bookme.co.nz and expedia.co.nz, which provide some 35 per cent of bookings.
Colliers Queenstown Broker Barry Robertson says the business is well located on Frankton Road, the main route leading into Queenstown.
“Garden Court Suites and Apartments is next to existing hotels and apartments, as well as new hotels under construction, which is testament to the strength of the location.
“Its three buildings comprise the suites and two stages of apartments on a 4,331sq m total site.
“The complex includes 17 two-bedroom apartments, 22 one-bedroom apartments and 15 studio suites. This provides a total of 71 rooms, making the property attractive to operators looking for a good level of scale.”
The 41 Frankton Road property, which comprises the 23 suites plus a reception and breakfast room, has 21 years remaining on its lease.
The 31 individually owned apartments at 3-7 Adelaide Street are on individual management contracts, under two bodies corporate, with 35 years remaining on the contracts.
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