Two of Christchurch's largest hotels are for sale during a period of record growth in New Zealand's hotel sector.
The 154-room Novotel Christchurch and the 155-room Ibis Christchurch are being offered for sale exclusively by Dean Humphries of Colliers International, as one parcel or individually, by way of international expressions of interest closing Wednesday, April 27.
Humphries, Colliers' national director of Hotels New Zealand, says these assets represent the largest tranche of hotel accommodation to be offered for sale in the South Island over the past five years.
Dean Humphries, of Colliers International
"Both hotels are subject to a long-term leasehold tenure that is a common ownership structure for many hotels - particularly those located in strategic locations. This creates the ability for a new owner to benefit from the assets' highly attractive return profile," he says.
"Following extensive upgrades over 2012 and 2013, both the Novotel and the Ibis are presented to market in 'as new' condition and are widely recognised as two of the best performing hotels in the Christchurch market."
The Novotel, at 52 Cathedral Square, is a four star-plus Qualmark-rated hotel in the heart of Christchurch's central business district (CBD).
It was purpose-built in 2010 and then re-opened in 2013 following extensive seismic upgrading after the February 2011 Christchurch earthquake. Hotel amenities include significant conference facilities, a restaurant and bar, a fitness centre and basement car parking.
The 155-room Ibis Christchurch hotel
The Ibis Christchurch situated at 107 Hereford St is a three star-plus Qualmark-rated hotel built in 2007 with amenities including a restaurant and bar, meeting room and basement car parking. It is in the heart of the CBD and close to many of the city's key hotel demand drivers such as Hagley Park and the recently opened BNZ Centre.
Humphries says given the hotels' prime CBD locations they are well-positioned to take advantage of the current tourism boom and growing corporate demand as Christchurch rebuilds over the next five years.
"Major infrastructure projects close to the hotels include the proposed Christchurch Convention Centre, a new performing arts precinct, the public library and a number of large, new commercial developments such as the Deloitte Building."
New Zealand's tourism market is currently undergoing a period of unprecedented growth says Humphries.
"Nearly 3.2 million visitors arrived here over the past 12 months. That's an increase of around 10 per cent year-on-year.
"Hotel values are increasing by the day on the back of improving revenue and profitability.
"With further growth in visits anticipated and limited supply of hotel rooms in the pipeline, conditions suggest prospects for the local hotel sector will remain buoyant over the short to medium term.
"Following the successful sales through Colliers of the Novotel Ibis Auckland Ellerslie, Novotel Queenstown Lakeside and Novotel Wellington over the past six months, Host Hotels & Resorts - the current owners of these two Christchurch hotels - feel the time is right to complete the final phase of their divestment process for their New Zealand portfolio by offering these assets to market."
