New Zealand hotel investment has strong outlook
The New Zealand hotels market had a strong 2014 with active interest from overseas buyers combined with most major city hotels experiencing an increase in occupancy, revenue per available room (RevPAR) growth combined with improved Average Daily Rate (ADR).
Auckland, Queenstown and Wellington have all experienced growth in hotel occupancy, RevPAR and ADR in recent times.
This has led to increase overseas buyer awareness in recent months with approximately $NZ90 million of hotels sold with the Chateau on the Park and the Hotel Grand Chancellor the two biggest deals completed.
“Last year we saw strong interest from Asian buyers in the New Zealand Hotel market and that has continued in the early part of 2015,” Stephen Doyle, Executive Vice President – Strategic Advisory JLL’s Hotels & Hospitality Group, said.
“For the remainder of this year we expect only a few buyers to be actively marketing their properties, and as a result of that, we believe that targeted approaches will be directly made from interested parties,” he added.