JLL seeks investor for SkyCity's Auckland hotel

Artist's impression of proposed SkyCity hotel to be built in Hobson St, Auckland, adjacent to the planned international convention centre.

JLL has been engaged by SkyCity Entertainment Group Limited to seek an external investor for the development and ownership of Auckland's newest five star hotel to be sited in Hobson Street, adjacent to the proposed international convention centre.

Mark Durran of JLL.

The planned 300 room hotel is being designed collaboratively by Warren and Mahoney and Moller Architects.

It will see the development of the Hobson St, Nelson St and Wellesley St block as part of the expanded convention precinct master plan.

Nick Hargreaves, JLL's New Zealand managing director of New Zealand says he envisages securing a preferred investor for SkyCity by the end of the 2015.

"Features of this hotel will include its location in the heart of the Auckland CBD; its connection to the convention centre; a retail laneway and the provision of additional car parking to this central city location," Hargreaves says.

Artist's aerial view of the planned new SkyCity hotel in Hobson within its streetscape.

"The hotel will be linked by an air-bridge to the rest of SkyCity Auckland's entertainment precinct and will offer local and international guests a variety of restaurants, bars, and entertainment."

Nick Hargreaves of JLL.

Hargreaves says the new development will provide further impetus to the New Zealand hotel accommodation market which has "continued to perform robustly with a solid increase in occupancy levels over the past few years".

Mark Durran, JLL's managing director - hotel investment sales for Australasia, says the SkyCity project presents an excellent opportunity for an investor to enter a tightly held hotel market in New Zealand's gateway city.

"The new hotel will benefit from the continued strong growth in the Auckland hotel market including increasing international visitors, longer-term stays and additions to airline capacity and routes," Durran says.