Hyatt Regency Hotel has potential buyer

A potential buyer has been found for Auckland's Hyatt Regency Hotel which has been in the hands of a group of South Canterbury lawyers for the last year.

Lachie McLeod, chief executive of South Canterbury Finance, said a buyer had shown interest in the hotel which was worth more than $50 million but no deal had been done yet and he could not say who the interested party was.

An announcement might be made in early August once Ed Sullivan of Timaru law firm Raymond Sullivan McGlashan returned from annual leave, McLeod said.

A group of Timaru lawyers including Sullivan bought the hotel last year for a reported $48 million after a series of financial problems with its former owners, Savoy Equities and Hudson NZ.

As head of the new group of owners, Sullivan said they planned to refurbish the Hyatt's rooms over a two-year period and he regarded the investment as being a first-class hotel which would be improved by the planned enhancements.

Last week, Auckland's Carlton Hotel sold to Australia's Abacus Property Group for $96 million, prompting speculation amongst real estate brokers that the Hilton chain was negotiating to buy the Hyatt, the 273-room hotel at the corner of Waterloo Quadrant and Princes St.

But McLeod denied any sale had been made and said nothing would be announced for some weeks.

"Apparently there is an interested party doing some work," McLeod said.

Paul Doole, a specialist Auckland apartment developer, said he had investigated buying the Hyatt and had discussions with McLeod and South Canterbury Finance chairman Allan Hubbard about the deal.

But the hotel rooms needed a $10 million to $12 million investment to bring them up to five-star quality, Doole said.