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Home / Property

No business like snow business

NZ Herald
9 Nov, 2013 01:19 AM4 mins to read

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Skotel was originally developed as a ski resort and lodge but has expanded its appeal to a year-round hospitality venture and features a Lockwood solid wood interior.

Skotel was originally developed as a ski resort and lodge but has expanded its appeal to a year-round hospitality venture and features a Lockwood solid wood interior.

New Zealand's highest hotel on Mt Ruapehu and one of only three commercial accommodation providers in the Tongariro National Park has been placed on the market for sale.

Skotel Alpine Resort at 1 Ngauruhoe Place, Whakapapa Village, is 1142 metres above sea level and was constructed in Lockwood solid wood decor in the mid-1980s by a group of recreational skiers looking for a European-styled lodge on the mountain but with better facilities than available in the ski club lodges.

The hotel was bought from the sports loving consortium in 1990 and, now after 23 years of running the business, owner John Strevens, a former Auckland City councillor, is looking to retire to spend more time with his grandchildren overseas.

The business has been placed on the market for sale through Bayleys, with expressions of interest closing on December 3.

Bayleys salesman Michael Pleciak says Skotel was originally developed as a ski resort and lodge. However, the evolution of eco-tourism in New Zealand and its attraction to tourists from overseas has expanded its appeal to a year-round hospitality venture.

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"The increasing popularity of the Tongariro Crossing walk - regarded as one of the world's greatest one-day hikes - and the growth in mountain biking have added another year-round dimension to the traditional uses of the park," Pleciak says. "Summer now competes with winter as the busiest time of the year."

The resort has 48 accommodation units - consisting of five individual cabins with bunk beds and double beds, 31 hotel rooms with facilities, and 12 rooms in a backpackers wing with shared facilities. Its position on the edge of the Whakapapa Village gives the rooms views of the region's three prominent landmarks - Mt Ngauruhoe, Mt Tongariro and Mt Ruapehu.

The hotel employs 14 full-time staff equivalents with staff numbers reducing during autumn months and rising to full-strength for the start of the ski season. Staff are employed in administrative, food and beverage, housekeeping, and maintenance roles. To accommodate employees, the hotel has a three-bedroom manager's flat, adjacent to five individual staff quarters - each with its own facilities

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A spacious a la carte restaurant seats 65 diners at individual tables or up to 80 people when catering to tour groups. The house bar features outstanding views of Ngauruhoe overlooking a large balcony with seats and tables while two separate lounges cater to the TV-watching backpacker market and guests seeking a quieter library area. Below the main rooms a basement contains a spa and sauna complex, games room, gymnasium and ski hire department operated by Edge to Edge, a sub-lessee tenant.

Pleciak says a regular programme of building maintenance and upgrading work is undertaken in the quieter period of the year. "Work undertaken during the last two autumns has included re-carpeting most guest bedrooms, adding balconies to 10 bedrooms, resurfacing the rear car park, and an ongoing programme of interior and exterior painting."

The three-star rated Skotel sits on 1ha of land leased from the Department of Conservation. Pleciak says Skotel has just negotiated a new 30-year authority with the Department of Conservation, with a further 30 year right of renewal. The new lease is currently being advertised for stakeholder input.

"The Tongariro Park Management Plan has strict limits on the expansion of the Whakapapa Village and the complementary nature of the park's three accommodation providers - Skotel Alpine Resort, the Grand Chateau and the Park Motor Camp - currently meet the need for any such facilities in the park," Pleciak says.

"Each of these accommodation providers targets a different guest demographic. Skotel takes the mid-budget range from a room perspective, while offering food and beverage operations that appeal to guests from the more upmarket Grand Chateau and the more budget conscious camp ground."

With a strong emphasis on marketing, Skotel is a member of the Tourist Industry Association of New Zealand, the Hotel Association of New Zealand, Mainstay Marketing Group, Qualmark and the Tongariro Natural History Society. Pleciak says the hotel is being sold complete with a substantial number of bookings for the coming summer period and into the 2014-15 summer and beyond.

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