US billionaire to buy Queenstown hotel

The 138-year-old Eichardt's Private Hotel, in Queenstown is up for sale. Photo / Otago Daily Times/James Beech

The long-term lease and boutique visitor accommodation business within Queenstown's historic Eichardt's Private Hotel looks set to be bought for less than $1 million by American billionaire Julian Robertson.

Highland Resorts Ltd co-director Stephen Fisher, of Auckland, told the Otago Daily Times yesterday he and his partners were completing due diligence with the Robertson family.

"We have a conditional agreement until Friday this week, so on Friday I will be much better placed to tell you whether it has sold or not," Mr Fisher said.

"There are other interested parties should this sale not proceed."

Julian Robertson co-founded Tiger Management LLC - the world's largest hedge fund - but went on to develop the Kauri Cliffs and Cape Kidnappers golf resorts and the Te Awa and Dry River wineries in New Zealand.

Mr Robertson bought the exclusive Matakauri Lodge, near Queenstown, a year ago, following approval from the Overseas Investment Office.

Son Jay Robertson was the general manager of the lodge and looked after the family's stable of lodges and hotels in New Zealand, Mr Fisher said.

Jay Robertson declined to comment yesterday.

Mr Fisher said he could not disclose the sale price, but the figure was under $1 million.

The lease would probably be transferred in early December.

The decision to sell was made at Highland Resort's annual meeting in December 2009, he said.

"The partners of Eichardt's are also the same group of partners that own the Branches Station and our focus is on the station. One of our former partners, Bill Shaw, had other hotel interests, but he has since sold out of our partnership and so we have decided that our focus and attention should be on the high-country station and, therefore, have reluctantly decided to sell the hotel."

The group's international marketing campaign by Luxury Real Estate and Harcourts drew about 25 registered interests from mid-2010, Mr Fisher said.

There was "strong New Zealand-wide interest, but also interest from Australia and the US", he said.

When asked what prompted Highland directors to choose the Robertson family's bid, Mr Fisher said: "It was the preferred offer, rather than necessarily the best, because we also felt that, coupled with their recent acquisition of Matakauri Lodge, that there would be good synergy with the two small hotels and that would be a good outcome."

The lease had about another 20 years to run.

The Eichardt's building is owned by Skyline Enterprises.

The Companies Office lists Mr Fisher and fellow Auckland resident Stephen Tindall as directors of Highland Resorts Ltd, along with William Lipner, David Teece and David Thomson, whose addresses are in the United States.

- OTAGO DAILY TIMES