Waterfront hotel opportunities in Nelson quickly snapped up
One of New Zealand’s finest boutique hotels has sold after being on the market for less than a month.
The elegant and modern Englishstyle hotel — formerly known as the Grand Mercure — at 6 Point Rd in Monaco, Nelson, defied all notions of an uncertain market to receive widespread interest from competitive buyers.
JLL brokers Nick Thompson and Harry Fergusson were exclusively appointed to market the property.
Following the successful transaction, the purchaser, Murali Kodoor from Arden Group, then enlisted Thompson and Fergusson to help acquire further assets to immediately expand the group’s Nelson portfolio.
The adjacent Honest Lawyer accomodation and restaurant at 1 Point Rd was the logical target as the freehold land and buildings had been on the market some years ago but had not sold.
After a short negotiation, Arden Group purchased the property offmarket.
Thompson says these transactions indicate the positive direction of the market for hotels in New Zealand.
“We ran a comprehensive nationwide campaign for the Grand Mercure Monaco hotel but still we were impressed by the sheer amount
of interest we received,” says Thompson. “After less than three weeks we had more than 40 qualified leads, with Arden Group winning the bid to sign an unconditional deal. During the campaign Arden Group expressed their interest in further expansion, and when we presented the prospect of 1 Point Rd they didn’t hesitate.
“This unwavering demand means sellers of hotel and hospitality assets in New Zealand are receiving returns akin to before the pandemic.”
Arden Group has positive plans for the two properties. “We own and operate a significant number of hotels and motels in the North Island but we wanted to establish our presence in the South Island and this sale with JLL provided the perfect opportunity,” says Kodoor.
“We are already investing in Grand Arden Monaco to make it a 4.5-star boutique hotel. This upgrade has created jobs in the community and the local companies will continue to be involved with our investment,” he adds.
Fergusson says the industry is now well placed for future growth.
“Following a period of uncertainty, we’ve seen a surge of interest in hotels and hospitality in New Zealand. Optimism around the deployment of vaccines, the bubble with Australia, and an eventual recovery in tourism has started to drive activity and investors don’t want to miss the opportunity.
“The cycle has been reset and we are now on well into our journey of recovery.”