Queenstown hotel sale price 'more than $15m'

Queenstown's Tanoa Aspen Hotel and associated property holdings has sold, apparently realising a purchase price of more than $15 million.

The 73-room hotel, with stunning lake and mountain views - with 5778sq m of development land, four residential properties and two adjoining apartments - has been purchased by a New Zealand-based investor.

Dean Humphries, National Director of Hotels for Colliers International, who marketed the hotel with Barry Robertson of Colliers Queenstown, says strong inquiry and a large number of offers were received from national and offshore buyers.

"Although the sale price remains subject to confidentiality, pricing indications throughout the sales process were for offers over $15 million."

Rohit Reddy, Managing Director of the New Zealand based Reddy Group, which owned the hotel, says the timing was right to sell.

"Given the current strong performance of the Queenstown market, it created a perfect time to divest this asset at optimal pricing, with the group electing to focus on its extensive South Pacific hotel portfolio and range of commercial investments."

New Zealand is experiencing its largest tourism boom in decades, with international visitor arrivals reaching 3.29 million for the year ended May 2016 - an annual increase of 11 per cent, compared to the same period last year.

A recent report commissioned by NZTE, Tourism New Zealand and the MBIE found that Queenstown was experiencing "severe capacity constraints" during peak periods, with minimal new supply forecast over the short/medium term. Humphries says booming tourist numbers are pushing up occupancy rates to historically high levels, resulting in increasing profit and asset values for hotels.

Robertson says the land adjoining the hotel was one of the few remaining development sites in Queenstown.