Two of Christchurch’s largest hotels, the 154-room Novotel and the 155-room Ibis, are for sale during a period of record growth in New Zealand’s hotel sector.
The Novotel Christchurch and the 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 April 27.
Humphries, Colliers’ national director of Hotels New Zealand, said these assets represent the largest tranche of hotel accommodation to be offered for sale in the South Island over the past five years.
“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 said.
“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 is a four star-plus Qualmark-rated hotel in the heart of Christchurch’s CBD.
It was purpose-built in 2010 and 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 Ibis Christchurch is a three star-plus Qualmark-rated hotel built in 2007 with amenities including a restaurant and bar, meeting room and basement car parking.
Humphries said 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.
New Zealand’s tourism market is currently undergoing a period of unprecedented growth, said 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.
“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.”