‘Flash packers’ will multiply
The Alpe family have sold half of their Kiwi budget pod hotel chain Jucy Snooze to Australian hospitality operators to fast track the expansion of the ‘‘flash packer’’ accommodation.
Jucy chief executive Tim Alpe said the deal would allow the chain to accelerate through New Zealand, Australia and into other international markets. At present it had three hotels – Queenstown, Christchurch and Auckland – targeting budget-conscious travellers.
Under a new joint venture, 50 per cent of Jucy Snooze had been sold to Event Hospitality & Entertainment (Event), a company listed on the Australian Stock Exchange with more than 9000 employees in Australia, New Zealand and Germany.
Event operated cinema businesses alongside more than 60 hotels with the Rydges, QT and Atura brands, as well as Australia’s Threadbo ski resort.
‘‘Event had seen our unique accommodation offering and wanted to move into the growing ‘flash packer’ market,’’ Alpe said
‘‘They bring significant experience in hotel development, procurement, food and beverage, and operations as well as capital investment and access to new sites in Australia. ‘‘This will allow us to fast track the export of the Jucy Snooze concept into that market.
‘‘Without this investment, we would have been able to open a new site every few years, but we now hope to significantly expand Jucy Snooze over the next five years to cater for the growing demand for this product offering,’’ Alpe said.
The deal would mean more Jucy pod hotels in New Zealand, bringing more employment and regional spending. Jucy had been wanting to move into the Australian market for some time and realised it needed a partner for that.
Alpe declined to reveal what Event paid for half of Jucy Snooze.
The locations of the new hotels would be aligned with the rental fleet’s distribution and popular places that its clientele liked.
‘‘How many that is and how fast that is is yet to be determined but what is clear is that we will be able to move a lot quicker in a partnership with Event than we could ourselves.’’
While it targeted the ‘‘flash packer’’ markets it also had a mix of customers from the 55-year-old British tourist to the 18-year-old Swedish backpacker, he said.
Its hotels offered pod rooms and en suite rooms. A new hotel in Auckland would also offer double rooms. It was expected to open in September.
The pods offered people privacy, charging for phone and electronic devices, and fans. Its Christchurch Jucy Snooze had 144 pods and 61 en suite rooms, Queenstown had 196 pods and 37 en suite rooms and a new Jucy Snooze in Cook St in Auckland would have 190 pods, 70 en suite rooms and 35 double rooms.
Pods ranged from about $35 to $55 a night depending on the time of the year and en suite rooms ranged from $85 to $130.
Alpe said its deal with a United States company – Los Angeles-based Care Development – to operate a $16 million Jucy Snooze hotel with 226 pods under the Stay Open brand in San Diego was underway.
Jucy had taken a shareholding in the US joint venture company Stay Open and was providing its expertise in the design and operation of the pod hotels to the joint venture.
The Jucy Group operates car and campervan rentals in New Zealand, Australia and parts of the US and has about 400 employees in these three markets.
Chief executive of Event Jane Hastings said it was excited to partner with Jucy Snooze to help drive its expansion. It would also open a new growth segment for Event Group.