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Home / New Zealand

Napier: Rundown hostel in need of redevelopment, site with consent for five-storey hotel on the market

By Gary Hamilton-Irvine
Multimedia journalist·Hawkes Bay Today·
31 Jul, 2023 01:26 AM3 mins to read

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The site on Marine Parade, which has become rundown in recent years. Photo / Paul Taylor

The site on Marine Parade, which has become rundown in recent years. Photo / Paul Taylor

A once-popular backpackers on Napier’s Marine Parade which closed during the Covid pandemic is now up for sale, movement that could see the “dilapidated” and “rundown” property given a new lease of life.

Napier City Business general manager Pip Thompson has praised the listing as “great for Napier”, given its sorry state and prime location close to the city centre.

The large building is best known as the former home of Kiwi Keith’s Backpackers, which closed around the start of 2021.

It has declined in recent years and is now characterised by smashed and boarded-up windows, gutted interiors and rubbish and graffiti visible inside.

“In terms of vibrancy for the city, and the fact that it has become dilapidated, rundown and an almost condemned building now, I absolutely think it is the best news,” Thompson said of it going up for sale.

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“If someone is willing to turn that back into a commercially viable business, that would be amazing.”

She said it would be particularly pleasing to see it redeveloped as an accommodation provider again in the future, such as another backpackers.

A new owner could redevelop the site, which is in a prime location on Marine Parade. Photo / Paul Taylor
A new owner could redevelop the site, which is in a prime location on Marine Parade. Photo / Paul Taylor

“As we know, since Covid, there has been a lot of accommodation [that has] gone into emergency and social housing, and there seems to still be a real lack of accommodation in town,” she said.

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“Someone privately might buy it and build their own mansion, but whatever it is going to look like and whatever it is going to be, it is only going to be great for Napier.”

The property up for sale is 217-229 Marine Parade, located just two doors down from arguably Hawke’s Bay’s best restaurant, Pacifica.

Question marks have hung over the future of the site in recent years and the current owner, Nautilus Family Trust Limited, told Hawke’s Bay Today in 2021 it was considering converting the property and two adjoining properties it owns into a new motel.

Those two adjoining properties are also up for sale: a carpark and a commercial building which currently houses Lighting Direct.

Nautilus Family Trust is also selling a fourth property further along Marine Parade which has consent for a five-storey hotel.

The four sites up for sale. Photo / Colliers
The four sites up for sale. Photo / Colliers

All four properties are being marketed through real estate company Colliers Hawke’s Bay and can be bought individually or as a package.

Consent for 59-room hotel

An empty lot facing the waterfront on Marine Parade is up for sale with consent to build a 59-room hotel, according to Colliers.

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Colliers stated the property up for sale at 161 Marine Parade has resource consent for the construction of a five-level, 59-room hotel.

It spans 707 square metres and is zoned ‘Inner-City Commercial’.

“It is incredibly rare to see a collection of properties such as these ones all presented to the open market at one time, and I urge all interested parties to contact me immediately to explore their options,” Colliers Hawke’s Bay director Danny Blair said.

Gary Hamilton-Irvine is a Hawke’s Bay-based reporter who covers a range of news topics including business, councils, breaking news and cyclone recovery. He formerly worked at News Corp Australia.

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