Weekend Herald

A tourism gem close to Whakarewar­ewa

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A substantia­l tourism complex in central Rotorua is up for sale with a renewed lease in place to its longstandi­ng operator.

The land and buildings of the

2570sq m Apollo Hotel complex on a

2864 sq m site at, 7 Tyron St, are up for sale. The hotel business’ current lease commenced in 2008 and it exercised the first of three five-year rights of renewal in September last year.

Featured in Bayleys’ first Total Property portfolio for 2018, the property is for sale by tender closing at

4.30 pm, on March 21, unless sold earlier.

It is being marketed by Owen Ding and Millie Liang of Bayleys’ Aucklandba­sed internatio­nal division in conjunctio­n with Bayleys Rotorua’s Mark Slade.

Ding says the Apollo has a variety of newly refurbishe­d accommodat­ion with modern facilities including a swimming pool, spa, sauna and fitness centre plus car parking for guests. A small conference room can also cater for meetings of up to 30 people. The buildings meet current earthquake standards, with a seismic assessment of 75 per cent of New Building Standard (NBS).

Ding says being an apartment hotel, the Apollo has a point of difference from traditiona­l hotel or motel accommodat­ion and offers high quality, serviced apartment options. “Guests can choose from a range of accommodat­ion from smaller hotel studios to fully self-contained one or two bedroom apartments tastefully furnished with well-equipped kitchen and laundry facilities,” he says.

“The property is in Whakarewar­ewa's geothermal tourism precinct only a minute’s walk away from the Maori Village and an easy drive to the Polynesian Spa and Blue Baths.”

Whakarewar­ewa Forest is also about 10 minutes’ walk or a short bike ride away.

The trails in the forests attract an estimated 230,000 mountain bikers per year and between 600,000800,000 other annual visitors.

Millie Liang says the long-term nature of tourism leases, such as the hotel’s, makes them attractive to investors.

“The Apollo lease will run for close to 15-more-years if it continues to exercise its rights of renewal.

“Knowing that they have a long surety of tenure, tenants also are generally prepared make a significan­t investment in furnishing­s, fittings and amenities, with regular refurbishm­ents undertaken to maintain their market appeal. This also increases the appeal.”

Liang says another drawcard for investors is the Apollo lease’s built in rental growth. The property is generates annual net rental income of about $345,870 with fixed rental increases of two per cent per annum. There is also a review to market scheduled for each lease renewal date.

Latest statistics show that guest nights spent in Rotorua’s commercial accommodat­ion were up 3.4 per cent to 2,330,051 in the November 2018 year, exceeding the national increase of 2.6 per cent.

Though internatio­nal guest nights declined slightly (0.8 per cent), they were offset by a 5.9 per cent increase in domestic guest nights.

 ??  ?? The 2570sq m Apollo Hotel complex at, 7 Tyron St.
The 2570sq m Apollo Hotel complex at, 7 Tyron St.

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