Tourism investment partnership expands portfolio
POSTED ON: 23 December 2019
A new investment partnership established to invest in domestic tourism assets is expanding its portfolio with the acquisition of the 203-room Holiday Inn property in Rotorua.
NZ Hotel Holdings Asset LP was formed in July this year as a partnership between NZ Super Fund, The Russell Group and Lockwood Property Group. The Rotorua hotel will be added to a portfolio that includes the Four Points by Sheraton and Adina Auckland Britomart in Auckland, and BreakFree Hotel in Christchurch.
Russell Group Managing Director Brett Russell says the Rotorua hotel property is an excellent opportunity, and the partnership is pleased that it is the next acquisition for its hotel investment partnership. Under the partnership, Russell Property Group is responsible for identifying and scoping potential investment opportunities.
The 4.5 star hotel includes large-scale function and meeting facilities that can host up to 1,000 delegates, as well as the popular Chapmans Restaurant, heated outdoor pool and spa facilities, gymnasium and parking for more than 120 vehicles. The hotel is situated on more than one hectare of land adjoining the Whakarewarewa Maori Village and geothermal park, one of the region’s most popular tourist destinations.
Mr Russell says the hotel had recently undergone extensive renovation, including a range of new plant and seismic upgrades, and refurbishment of many of the guest rooms and front of house amenities.
“The Rotorua market remains one of New Zealand's leading tourism destinations, which in recent times has seen hotel occupancy surpass 80 per cent. In the past 24 months, Rotorua has been one of the best performing tourism markets in the country,” he said.
“Being only three hours’ drive from Auckland, and located on the international tourism route, Rotorua continues to be one of the most highly sought-after destinations in the country by both international and domestic travellers,” said Mr Russell.
NZ Super Fund’s Head of Direct Investments Will Goodwin says the strategic acquisition into a key provincial tourism hub was in keeping with the fund’s strategic objectives of adding assets in provincial tourism centres to complement its existing portfolio of properties in gateway cities like Auckland and Christchurch.
“We’re pleased to be expanding our investment in New Zealand’s tourism sector.
“The most recent Stats NZ Tourism Satellite Account says total annual tourism expenditure reached $40.9 billion, an increase of 4.0 percent from the previous year.*
“Rotorua is an attractive destination for international and local toursist alike. Total hotel guest nights for the year to September stood at more than 965,000, making the Rotorua property a high-value addition to the portfolio.”**
The hotel is managed by international hotel operators IHG under its popular Holiday Inn brand. IHG will continue to manage the day to day operation of the hotel. This is the first major hotel to to be sold in Rotorua since 2011 with hospitality assets in the region tightly held.
Click here to download high resolution images of the hotel.
About NZ Hotel Holdings Asset LP:
NZ Hotels Holdings Asset LP is a partnership formed in July, 2019, to facilitate investment in tourism assets in New Zealand. It comprises the $45 billion NZ Super Fund, a global investment fund that was established by the New Zealand Government to help pre-fund universal superannuation, the Russell Group of Companies, one of New Zealand’s largest privately owned and operated construction and property organisations with entities including Russell Property Group (“RPG”) and Dominion Constructors, and the Lockwood Property Group, a private investment group owned by Steve Lockwood, a founder of the Crombie Lockwood Group, which from 1983 grew into New Zealand’s largest independent commercial insurance broking business.