Five-star hotel opportunity in booming Napier
The land and buildings associated with Napier's first
5-star international branded hotel are for sale, with opportunities for investors to run with the existing hotel management agreement or acquire with vacant possession to rebrand and reposition.
Located on the prominent corner of Munroe and Raffles streets in the Napier CBD, the Art Deco-influenced modern hotel offers 52 premium rooms managed by Swiss-Belhotel International under the HMA agreement for a 10-year term.
Built as an office tower with ground-floor commercial tenancies and 29 basement carparks in 2015, and largely occupied by PwC until their move in 2018, the four-level building was converted to hotel use, opening its doors in 2021 as Swiss-Belboutique Napier.
The conversion to upmarket hotel included development of on-site amenities including the Saffron Social Kitchen restaurant, in-house gym/ fitness centre and guest laundry.
There are three commercial tenancies with a total 500sq m footprint at street level, two leased to office occupiers returning current gross passing income of $83,309 annually, with the third space of 200sq m currently vacant.
Swiss-Belhotel International has an initial
10-year HMA in place from 26 June 2020, and an extension term of a further 10 years.
The current agreement has a Termination on Sale clause in it which, if exercised by the vendor, means the property can be acquired by a new owner with vacant possession if desired.
36 Munroe St, Napier South, is for sale by tender via Bayleys Auckland Central, closing at 4pm, Thursday November 16, unless sold prior.
Wayne Keene, Bayleys national director hotels, tourism and leisure, says hotel stock is tightly held in New Zealand and the Napier opportunity is underpinned by an international tenant covenant that is well-placed to capitalise on a captive domestic and growing international tourism market.
Headquartered in Hong Kong, Swiss-Belhotel International is recognised as one of the fastestgrowing hotel management groups with more than 125 projects spanning 19 countries. It manages Swiss-Belresort Coronet Peak and Swiss-Belsuites Pounamu in Queenstown, plus Swiss-Belsuites Victoria Park, Auckland.
Tourism is the third-biggest earner for the Hawke's Bay economy behind agriculture and manufacturing, and with a strong uptick in electronic card transactions throughout the region, plus solid hotel occupancy levels, Swiss-Belboutique is well positioned for the summer season.
The region has several big-draw events including the Mission Concert, Art Deco Festival, FAWC Food and Wine Classic, along with an acclaimed wine trail and other recreational attractions.
With limited competition in the upper end of the Bay’s accommodation market, Swiss-Belboutique Napier has a competitive edge, says Keene.
There’s further potential for a new owner who retains the current HMA through optimised room and occupancy rates. Alternatively, a change in management agreement could be explored, while leasing the vacant ground-floor commercial tenancy would boost rental income.
Keene says the offering could appeal to a local buyer wanting to add a trophy asset to a portfolio, an out-of-town investor or a forward-thinking owner-occupier who sees value in the growing Hawke s Bay tourism market.