The entrance to the Novotel IBIS Hotel in Ellerslie, Auckland.
The entrance to the Novotel IBIS Hotel in Ellerslie, Auckland.
The Novotel IBIS Hotel in Ellerslie, Auckland, has been put on the market for sale with the tourism sector reporting high levels of accommodation occupancy.
"There's never been a better time to own a hotel in Auckland," says Dean Humphries, national director of hotels for Colliers International, which is marketing the Novotel exclusively through an international expressions of interest campaign closing on July 15.
"The hotel sector is currently experiencing unprecedented trading conditions with strong inbound visitor arrival numbers and virtually no new significant supply forecast to come onto the market over the short to medium term," Humphries says.
"In particular the Auckland tourism market and hotel sector is running at historically high growth levels with occupancy surging to over 80 per cent and room rates having increased by eight per cent over the past 12 months."
The six level, 247 room Novotel Ibis Ellerslie at 72-112 Green Lane Eastwas purpose built in 2000. It is dual branded with 147 rooms operating under the 4.5 star Novotel brand, and the remaining 100 rooms under the 3.5 star Ibis brand.
Amenities include a restaurant and bar, extensive conferencing facilities, 24-hour reception and lobby, gymnasium and on-site car parking. The hotel guest rooms and conferencing areas were extensively refurbished in 2009.
"This is the largest hotel to go on the market in New Zealand in five years and the timing is right for a quality asset like this to be offered to the market, given the wave of investors wanting to take advantage of New Zealand's booming tourism sector," Humphries says.
"The international hotel investment community is taking note of our exceptional trading conditions with more and more investors looking to establish a foothold in our booming market. Auckland is increasingly being recognised as an international investment destination."
Elevated view of Novotel IBIS Hotel at 72-112 Green Lane East, Ellerslie.
He says Colliers' latest Hotel & Tourism Research Report reflects this sentiment, showing New Zealand's hotel and tourism market experiencing unprecedented first quarter growth this year.
The report shows that a record 2.95 million inbound visitors arrived in the year ending March 2015 - a seven per cent increase over the previous 12 months.
"Many regions achieved historically high occupancy levels along with surging room rates and revenue per available room [RevPAR] growth," says Humphries.
"Auckland and Queenstown are the star performing regions achieving RevPAR growth of 20 per cent and 18 per cent respectively in the first quarter of this year, compared to the same period in last year..
"Rotorua is the surprise package with occupancy increasing by eight per cent this quarter to 87.3 per cent which assisted RevPARgrowth of 17 per cent year to date March 2015.
"This strong growth is also forecast to continue with three million international visitors expected in New Zealand this year."
Humphries anticipates a record price for Novotel Ibis Ellerslie which he describes as "a trophy asset" - basing his prediction on recent hotel sales trends including the Hotel Grand Chancellor at Auckland Airport and the Kingsgate Hotel in Wellington.
Dean Humphries of Colliers.
"Buyer demand for hotel assets is at an all time high.. We have seen three hotels exchange hands in the past six months and buyers now outnumber sellers by five to one," he says.
The hotel benefits by its strategic location adjoining Ellerslie Racecourse & Convention Centre and the Mercy Ascot private hospital and medical precinct. It is also relatively close to a number of other facilities like ASB Show-grounds, the Southern Corridor office precinct and Mt Smart Stadium.
The Ellerslie hotel has excellent access to Auckland airport and the motorway network - being located beside the Greenlane interchange of the State Highway One southern motorway - with the Auckland CBD only seven kilometres away.
Humphries says strong forward bookings and increasing airline capacity across many existing and new carriers, point to positive short and medium term outlooks for the hotel and tourism market.
"The recently announced Air New Zealand link to Houston, USA, as well as a new alliance between Air New Zealand and Air China offering daily flights from Auckland to Beijing by the end of this year, are all strong signs for the sector.
"It is likely more hotel property assets will be brought to the market as vendors take advantage of increasing values based on long-term, sustainable growth in revenue and profitability along with strengthening yields."
Sales method: International expressions of interest.
Deadline: Closing on Wednesday, July 15.
Features:
• Six level building with 247 rooms. • Restaurant, bar, conference facilities, gym, car parking. • Extensively refurbished in 2009. • Adjoins Ellerslie Racecourse and Convention centre. • Next to Greenlane interchange of SH1.
