Otago Daily Times

Dis­cov­ery Lodge bought by in­vestor

QUEEN­STOWN

- Business · Travel · Investing · New Zealand · Queenstown · Queenstown · Colliers International

CON­TRACTS have been ex­changed in what is be­lieved to be the first ma­jor ac­com­mo­da­tion sale in New Zealand since Covid­19 cri­sis struck in March.

The 65­room, 384­bed Dis­cov­ery Lodge in Queen­stown was bought by New Zealand’s largest pri­vate ho­tel in­vestor, Pandey Ho­tel Corp, part of the CP Group, in a deal bro­kered by Col­liers In­ter­na­tional.

Col­liers na­tional director of ho­tels Dean Humphries said un­til the deal was struck, no ma­jor ac­com­mo­da­tion as­sets had sold since the pan­demic put pres­sure on the coun­try’s hos­pi­tal­ity as­sets.

Dis­cov­ery Lodge is lo­cated in the heart of Queen­stown and is one of only a hand­ful of free­hold ac­com­mo­da­tion as­sets lo­cated in the town cen­tre.

“These prop­er­ties are rarely traded and char­ac­terised as strate­gic core as­sets,” Mr Humphries said.

“The last sale of a ma­jor ac­com­mo­da­tion as­set in the town cen­tre was the Novo­tel Gar­dens back in October 2015, ex­actly five years ago.”

Dis­cov­ery Lodge is leased to a ma­jor bud­get ac­com­mo­da­tion provider at present but will be con­verted to a five­star bou­tique ho­tel once the lease ex­pires.

The prop­erty is lo­cated in Sho­tover St. The 3200sq m build­ing was built in 2004 and is lo­cated on a 1000sq m par­cel of free­hold land.

The cur­rent Auck­land­based own­ers bought the prop­erty in mid­2015 as a pas­sive in­vest­ment with a long­term lease in place.

“With the ad­vent of Covid and the lease now mov­ing to­ward ex­piry, the own­ers were look­ing at a range of re­po­si­tion­ing op­tions,” Mr Humphries said.

In late July CPG Ho­tels, part of the CP Group, an­nounced the cre­ation of its lux­ury bou­tique ho­tel brand, Fa­ble Ho­tels and Re­sorts, and this prop­erty was ex­pected to be­come part of the Fa­ble port­fo­lio.

“Despite the many chal­lenges the wider in­dus­try is fac­ing with Covid, there re­mains ro­bust de­mand from a range of in­vestors seek­ing prime strate­gic ac­com­mo­da­tion as­sets in our key tourism re­gions,” Mr Humphries said.

“Most ho­tel in­vestors have long­term in­vest­ment ob­jec­tives in the knowl­edge there are al­ways cy­cles in the mar­ket.

‘‘The sale price re­mains con­fi­den­tial be­tween the par­ties. How­ever, we do not be­lieve any ma­te­rial dis­count was paid due to the cur­rent mar­ket con­di­tions. If in­vestors wish to se­cure prime strate­gic real es­tate, they need to meet the ex­pec­ta­tions of the ven­dors no mat­ter where we are in the cy­cle.’’

❛ Despite the many chal­lenges the wider in­dus­try is fac­ing with Covid, there re­mains ro­bust de­mand from a range of in­vestors seek­ing prime

strate­gic ac­com­mo­da­tion as­sets in our key tourism re­gions

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