Hotel chain in expansion mode
The Quest franchise group will open new hotels in New Zealand on the back of another year of record revenue growth and high occupancy.
Quest on Manchester, a $15 million investment, will open in Christchurch on June 1 at 54 Manchester St. In East Tamaki, the 60-room extension at Quest Highbrook in Auckland will be completed in November.
Quest hotels have different ownership arrangements but operate under the same brand.
Quest on Manchester is being developed by Canterbury Property Investments principals Miles Yeoman and Craig Newbury on the site of the former Coker’s Hotel, demolished after the 2011 earthquakes.
A Quest is also due to open in Christchurch in Tuam St, and another in Tauranga in 2019.
Other Quest development partners are investing more than $120m in eight new properties at the planning phases for Auckland, Manukau, Christchurch, Palmerston North, Mt Maunganui and Wellington, taking the total number of hotels under the Quest brand to 40 in New Zealand. It also has 110 outlets in Australia.
Stephen Mansfield, chief executive of Quest Apartment Hotels NZ, said average occupancy across the group was more than 80 per cent at average rates more than $150 per night. Total turnover was $65m.
Quest had been under-represented in Christchurch with only one in place since 2005, Mansfield said.
Quest has also become the exclusive accommodation partner to the Air New Zealand Airpoints for Business customer loyalty programme. The partnership is part of Quest’s focus on accommodation for business travellers.
Mansfield said ASB recently became the second major bank after Westpac to accredit Quest as a franchise system of choice.
The accreditation will assist its franchisees and property development partners to secure finance from ASB.