Rotorua hotel sales set record

Two high-profile Rotorua hotels have been sold in New Zealand's largest commercial property deal this year.

Rotorua's Novotel Lakeside and Ibis hotels were sold for $43 million by their Australian owner, Tourism Asset Holdings Limited (TAHL), through United States-based international real estate company CB Richard Ellis (CBRE).

CB Richard Ellis New Zealand director Warren Hutt said the buyer was not yet being revealed but was a New Zealand-based group that had substantial interests in Auckland.

"Nothing more can be said about the purchaser and nothing will change in regard to hotel name and staffing as Accor is continuing as manager."

He said the anonymity was at the buyers' request and said the buyers would announce their involvement in "due time".

The sale campaign had generated interest from local investors, including several Maori groups, as well as a number of Asian-based investors.

"We're seeing renewed Asian interest in the New Zealand commercial market given the favourable returns that can now be achieved," he said.

"The weakness of the New Zealand dollar compared to the Australian dollar and other currencies makes substantial New Zealand assets attractive for off-shore buyers as the market moves into a recovery phase."

As well as the two hotels, the purchaser has obtained the stand-alone Matariki Maori Entertainment Centre, which hosts cultural performances and banquets. The centre operates year round for in-house guests, tour groups and the public. The hotels and the entertainment centre are on a 1.4ha site near the Lakefront.

The sale of the hotels was negotiated by Mr Hutt and CBRE regional director Rob Cross.

Mr Cross said the inclusion of the Matariki Maori Entertainment Centre had set the property apart from its competitors in a market moving into a recovery phase.

"The New Zealand and Australian hotel markets have shown strong growth over the past 12 months and this is anticipated to continue given the lack of new hotels coming on to the market."

Novotel Rotorua Lakeside and Hotel Ibis are side-by-side on Tutanekai St overlooking Lake Rotorua. They share a number of services and provide 344 rooms under the management of Accor, the world's biggest hotel and tourism group.