Picturesque Portage nestled in the Sounds

Portage Resort Hotel. Photo / Supplied

The well known Portage Resort Hotel in the Marlborough Sounds which has been hosting guests since the 1890s is being offered for sale with an asking price of $6,950,000 by negotiation through Neil Pollett, of Browns Sotheby's International Realty.

Substantially upgraded in 2001, the waterfront property is set in bushland with sweeping views across picturesque Portage Bay and Kenepuru Sound.

"The views are an outstanding feature of this iconic property," Pollett said.

"This is a Qualmark rated four-star resort and is the largest accommodation facility in the Marlborough Sounds with 50 keys."

The coastal property includes the hotel's site occupying 8747sq m, and a detached reservoir site of 1245sq m.

The resort has a full service restaurant seating 65 and a casual cafe-bar seating 120. Public areas of the hotel include a guest lounge with bar and a wide viewing deck, a games court and the landscaped grounds featuring native flora. Up to 100 can be seated in the Portage's conference room theatre style.

The hotel site's irregular eastern boundary fronts Kenepuru Rd and extends for 226.92m. The irregular western boundary abuts the foreshore reserve to Portage Bay.

"This extensive water frontage is a particularly attractive aspect of the property," Pollett said.

Pollett said the Portage had a well established international market and particularly attracts special interest groups from Britain, Europe and North America.

In addition to international tourists, the hotel caters for trampers undertaking the 71km Queen Charlotte Track - being situated in an ideal location at the three-quarter point of the track and at the end of a major section.

Other visitors and guests are delegates to conferences onsite, wedding and special occasion groups, and individuals and parties keen on pursuing active recreational activities. Pollett said that following a fire, the hotel buildings dated to the beginning of the 20th century and the complex was substantially upgraded from 1981-1992. "In 2001 there was a significant refit of the core hotel component. This included the refurbishment of the 11 Kowhai Lodge rooms and interior room redecoration elsewhere.

The eight-key Walkers' Lodge was redeveloped in 2005.

"During 2002 and 2004 an extension and upgrade was undertaken on the Snapper kitchen, manager's residence and staff quarters and there has been continuing landscaping and improvements."

Pollett said the property generated 47 per cent of its revenue from accommodation with the balance of the revenue derived from food and beverage sales through its Te Weka Restaurant, function room, Snapper bar and restaurant, and from guest activities including the Discover Portage activity programme.

The Portage is about 50km or just over one hour's drive to the northeast of Picton and the terminal for Cook Strait ferry crossings. "It can also be accessed in less than 30 minutes by boat or water taxi, being 9km by ferry across Queen Charlotte Sound to Torea Bay, then by road across the isthmus to the head of Portage Bay."

Also available at Portage Bay through Pollett and Browns Sotheby's is a large area of land with a 25-lot approved subdivision with sites ranging from 1000sq m to 8000sq m.

The Portage Resort has right of first refusal on six sections immediately opposite the hotel providing an opportunity to develop additional rental accommodation or serviced apartments.

Pollett said the vendors were prepared to commit to a leaseback of the hotel for an agreed period if required.