New Zealand is experiencing a record period of hotel investment with major hotels changing hands recently in Auckland and Wellington, says Dean Humphries, national director of Colliers International's Hotels division.
"Eleven major hotels changed hands in New Zealand in the last 12 months with a total value of nearly $350million," Humphries says.
"The 132-room Travelodge Wellington and 142-room Heartland Hotel Auckland Airport both recently sold to offshore interests. These were sold to new entrants to the New Zealand market and demonstrate the appeal that our tourism sector has to domestic and offshore investors.
Dean Humphries, of Colliers International
"We're witnessing an increasing number of investors flocking to our shores, attracted by the strong investment returns offered by our local hotel market.
"With only limited new hotel development expected in the near future, hotel investment returns are likely to increase significantly over the next three years - lifting hotel values to new heights.
"The tourism market is booming, fuelled by record visitation numbers, an attractive dollar, strong domestic demand and New Zealand's image as a safe place to travel."
The Travelodge Wellington
The Heartland Hotel is close to Auckland International Airport on George Bolt Memorial Drive on a 1.6ha site and is managed by the Scenic Hotel Group. The hotel has a three-and-a-half star Qualmark rating with 288 on-grade carparks as well as meeting facilities, a restaurant and a swimming pool.
Yesh Mudaliar, asset manager for Lotus Hospitality, says the company has been pursuing a hotel opportunity in Auckland for a while and are pleased to be finally being part of the New Zealand tourism market.
The Travelodge Wellington, at 2-6 Gilmer Terrace is a four-star Qualmark rated hotel. The property was fully retrofitted at a cost of $11 million in 2009 and includes multiple conference facilities with a restaurant and bar.
