Iconic property for sale in Queenstown

The strategically located Black Sheep Backpackers hostel offers investors the opportunity to invest in an established, successful tourism property in New Zealand’s top resort town.

An award winning hostel is for sale in Queenstown, offering investors a rare opportunity to acquire a freehold tourism investment in New Zealand’s premier tourist resort area. The Black Sheep Backpackers at 13 Frankton Road, Queenstown is well located in the town’s ‘dress circle’ in close proximity to the CBD and main arterial road into Queenstown. It comprises 1088 square metres of freehold land and a well-maintained purpose built accommodation building with 23 bedrooms, accommodating up to 90 people. It has large outdoor recreation areas, with lake and mountain views from many vantage points on the property. The property is offered with a 30 year lease in place to an established operator, and locked in rental growth through CPI adjustments and market reviews. It has a current annual rental of $207,635 plus GST. The property is being marketed by Steve McIsaac and Barry Robertson of Colliers International’s Queenstown office. “This is one of the better opportunities we have seen in the market in the past year for someone wanting to come in and invest in an established, successful tourism property in Queenstown. The property is leased to an established operator since 2014, who has an excellent reputation in the industry,” McIsaac says. “It is located in a central, quiet location, only a two-minute walk to the central business district, a key requirement for backpackers.” The hostel has numerous wellthought-out features for its visitors, including barbecue areas and a spa pool with magnificent mountain views, a comfortable lounge with plasma TV, video and satellite TV, new computers with Skype and webcams, a reading area with a real log burner, central heating, lockable bike storage, and a fully equipped kitchen and laundry. It also offers secure car parking, a rarity in Queenstown CBD. Robertson says the investment is supported by growth in the tourism industry in Queenstown, which is attracting an ever-growing number of visitors. “The region’s tourism industry has seen steady growth in the past few years and the number of visitors staying in Queenstown continues to increase, outpacing the rest of the country. For the year ended May 2018, Queenstown commercial guest nights were up 3 per cent over the same period in the previous year, compared with just a 1.7 per cent increase in guest nights nationwide.” Total passenger numbers through Queenstown International Airport were over 2.1 million in the year to December, a 14 per cent growth from the same time in 2017. Investors remain highly confident in both the commercial and residential property sectors in Queenstown and we expect this trend to continue. Chronic supply constraints and extremely high demand in many areas of the market are encouraging investors to remain active. Commercial property investor confidence in Queenstown has led the country for the past three years, with confidence at consistently higher levels than all other property hotspots including Auckland and Tauranga/ Mt Maunganui, according to Colliers International’s quarterly Commercial Property Investor Confidence Survey.