Huge NZ hotel portfolio up for sale including Sofitel Queenstown

What recession? NZ hotels spanning the South Island tourism capitals and Auckland are up for grabs as owners, led by NZ Super, hope to realise a $NZ600m payday.

In the tourist town of Rotorua, the portfolio includes the Rydges Hotel.

New Zealand’s largest hotel portfolio spanning the tourism capitals of the South Island and Auckland has hit the market with price expectations of more than $NZ600 million ($555 million).

“This is a monster portfolio by New Zealand standards,” said one Australia-based New Zealand investor, confident it would attract major international interest.

Up for grabs are seven large hotels including the Sofitel Queenstown Hotel and Spa, three hotels in Auckland – the Four Points by Sheraton, QT Auckland and Adina Apartment Hotel, Britomart. In the tourist town of Rotorua, the portfolio includes the Rydges Hotel, a BreakFree on Cashel Hotel in Christchurch, and another Rydges property in Wellington.

The penthouse in the Sofitel Queenstown, Hotel and Spa is up for grabs.

The pick of the portfolio controlled by NZ Hotel Holdings would be the five star Sofitel in Queenstown, which is bucking the economic woes of the rest of New Zealand, speculated the Australia-based hotel investor speaking on the condition of anonymity.

“Queenstown has it’s own ecosystem … We have had a fabulous summer. We recommend people stay at that Sofitel.”

The NZ Hotel Holdings portfolio was assembled in 2019 and is controlled by the NZ Super Fund, Russell Property Group and the Lockwood Property Group.

It was formed to develop New Zealand hotel assets to support domestic and international tourism in the land of the long white cloud.

NZ Hotel Holdings chief executive Marcus Reinders said with tourism now back on a growth curve, strong market fundamentals with increased international interest, “the opportunity is here to pass on the portfolio to an investor seeking scale, geographic diversity and holistic coverage of New Zealand’s key tourism markets.”

Sofitel Queenstown’s penthouse. Picture: Supplied

Rydges Hotel Wellington.

Recent benchmarks such as the record-setting sale of the InterContinental Auckland Hotel for NZ$180m to Singaporeans in March supports this view.

CBRE agents Michael Simpson, Peter Hamilton and Nick are managing the portfolio sale via an expressions of interest campaign closing June 26.

Mr Simpson said: “This is the largest and most comprehensive portfolio of investment grade hotels ever brought to market in New Zealand. New Zealand is an aspirational travel destination, world-renowned for its stunning natural landscapes, diverse wildlife, and rich cultural heritage. The portfolio offers expansive coverage of all of New Zealand’s major markets, with the portfolio hotels appealing to business and leisure travelers across all market segments.”