Hilton Auckland on the market

Photo / Richard Robinson

The five-star boutique Hilton Auckland has been put up for sale in an international campaign but its American operator will continue to run it and the property will stay a Hilton.

Dean Humphries, Jones Lang LaSalle Hotels' executive vice-president, who was appointed to sell the property exclusively said Hilton Hotels would manage it for the new owner as part of its operations here, which also include Hiltons at Taupo and Queenstown.

Brian Fitzgerald, an investor, said the property belonged to a number of parties including Willeston Capital.

"It's a great time to sell, never better. You won't sell just because of Rugby World Cup but it's performing well," Fitzgerald said.

Auckland Council records shows the Hilton, at 141 Quay St, was valued at $44.6 million in July 2008.

Its top floor is the quarter-acre apartment of bankrupt property developer David Henderson, whose Kitchener Group developed all six buildings on the wharf, creating bars, restaurants, covered carparking, apartments, offices and the hotel. Henderson still lives in the apartment, despite attempts to sell it for about $10 million.

All the wharf properties are on terminating leases, set to run for another 84 years, so that after then the buildings have no legal right to occupy the wharf space.

Hilton's restaurant White has been shut for some time as it undergoes a refurbishment and is expected to have a new name when it reopens.

Humphries said the ground-floor Overseas Passenger Terminal in the building was part of the sale deal.

"This also acts as a conference and exhibition centre for the hotel.

"Auckland Council has indicated that the passenger terminal will move to Queens Wharf in the 2012-13 cruise ship season, which will therefore allow the hotel to utilise this space more efficiently during future cruise ship seasons."

HILTON AUCKLAND
* Opened in 2001.
* 165 rooms.
* Seven function areas.
* Overseas Passenger Terminal.
* $44.6 million council valuation.
* Bids due by August 24.

This story has been corrected from an earlier version which said the leases ran for 50 years. They are 100 year leases, that have another 84 years to run.