Five-star luxury resort for sale
Fiji’s newest five-star luxury resort, on idyllic Wailoaloa Beach, near Nadi, is being offered to the market for the first time.
Colliers International, in conjunction with the local agents My Fiji Home, has been appointed to sell the Pullman Nadi Bay Resort and Spa Fiji by way of international expressions of interest.
The marquee resort boasts 236 beautifully appointed guest rooms, five restaurants and bars, multiple conference facilities, three swimming pools and a world-class health spa.
Pullman Nadi Bay opened in May 2019 and is managed by global operator Accor Hospitality, the largest operator in Asia Pacific.
Nestled on 5.78ha on the foreshore of Wailoaloa Beach, it is ideally situated to take advantage of Fiji’s ongoing tourism boom, being the closest five-star hotel to the recently upgraded Nadi International Airport.
Dean Humphries, Colliers’ national director of hotels for New Zealand and the South Pacific, says it is rare for a resort to be offered to the market so soon after opening.
“The owners of the resort, a large and established Fiji-based family, have spent the last four years developing the hotel,” he said.
“However, they have decided to sell this marquee asset to capitalise on Fiji’s strong tourism sector and a global investment market hungry for high-quality, high-yielding hospitality assets.”
Richard Kirke, sales director of Colliers International’s capitals markets team, is confident international investors will be attracted to Fiji due to the strong growth profile and attractive underlying returns it offers.
Kirke says that with hotel assets in most developed countries now demanding historically low yields, investors are searching for locations that can provide attractive returns and a strong growth profile.
“In the recent past we have seen a range of institutions, sovereign wealth and private equity funds investing heavily into tourism hotspots such as Maldives, Thailand, Vietnam, Tahiti and the eastern seaboard of Australia.
“Fiji as a prime tourism destination ticks all the boxes and is a country we believe will interest many of these parties.”
Gus Moors, head of hotels for Colliers International Australia, says Fiji also has a highly attractive exchange rate at just 0.46 against the US dollar and 0.66 against the Australian dollar.
“Fiji has always been the star performer in the South Pacific basin, accounting for 41 per cent of all international visitors in the region.
“Inbound arrivals for the year ending 2018 reached 870,000, representing an annual growth rate of 5.6 per cent since 2014.
“The key markets segments are Australians (43 per cent), New Zealanders (22 per cent) and the United States (10 per cent).
“It is forecast Fiji will reach 1 million international tourists by 2023. The Fijian Government has estimated the tourism industry to be a FJ$2 billion industry by the end of 2020.”
Humphries notes that Pullman Nadi Bay is ideally located to take advantage of all of the above macro and micro aspects of the global tourism boom and strong Fijian fundamentals.
He points to the following key attributes Pullman Nadi Bay offers to potential investors:
• Global tourism boom: Some 1.4 billion people travelled the world in
2018, well above forecast levels;
• Fiji is the strongest tourism destination in the South Pacific, estimated to reach 1 million visitors by
2023;
• Stable economy and attractive exchange rate; and
• Attractive investment yields/ returns (leveraged yield/IRR 12 per cent to 20 per cent).
The hotel is being sold through Colliers International and local agents My Island Home Fiji by way of international expressions of interest closing at 4pm (NZST) on Wednesday July 31.