Recent hotel sales shine the spotlight on regional tourism

Hotel Coachman, Palmerston North

Hotel Coachman and Skotel Alpine Resort the latest regional sales

The sales of two central North Island hotels in recent weeks have highlighted the strength of New Zealand’s regional tourism economy amid the country’s ongoing tourism boom.

One of the largest hotels in Palmerston North, the Hotel Coachman, has recently sold to the Distinction Hotel Group, while the Skotel Alpine Resort in Tongariro National Park has also sold to a local investor.

Dean Humphries, National Director of Hotels for Colliers International, who brokered both deals, notes that the recent high demand for hotels in New Zealand’s key centres is now cascading throughout the regions.

“With international tourism numbers set to top four million in 2019, we tend to forget that strong economic growth and high net migration over the last five years are also now fuelling strong levels of domestic tourism demand right throughout the country.

“Regions such as Rotorua, Taupo, Hawke’s Bay, Tongariro National Park and Tasman are benefiting from strong levels of domestic tourism demand.

“At the same time, cities such as Hamilton, Palmerston North, Dunedin and New Plymouth are all enjoying robust corporate and business demand.

“On top of this, Tourism New Zealand is also now focussed on marketing the regions as part of its wider global tourism marketing for the country.

“What this means is that the tourism boom is now starting to reach the regions, which is great news.”

Humphries adds regional hotel assets generally provide a more attractive level of investment return and are considerably less expensive than those in hotspots such as Auckland and Queenstown, and to a lesser degree Wellington and Christchurch.

The 72-room, 4.5 star Hotel Coachman is arguably Palmerston North’s most popular hotel and event facility, and a fixture of the local wedding scene. It is located at 140 Fitzherbert Avenue, just 800m from the city centre.

The Skotel Alpine Resort is located at the base of Mount Ruapehu in Tongariro National Park, one of three World Heritage sites in New Zealand. It is aptly known as the highest hotel in the country due to its elevation of 1,134m above sea level.

The Skotel sale was transacted by Humphries and Colliers International Broker Mat Gibbard.

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Dean Humphries

National Director | Hotels

Auckland CBD

Dean is a highly respected hotel investment advisor specialising in the disposal, acquisition and valuation of hospitality and tourism assets.  Dean provides advice to many institutional and tourism related entities including those noted in the client info tab.

Dean is also actively involved in a range of work in the wider South Pacific basin including; Fiji, Tonga & Samoa.

Dean joined Colliers International in May 2013 as National Director, Hotels for New Zealand and the South Pacific.

Prior to that Dean was Executive Vice President of Jones Lang LaSalle Hotels & Hospitality Group New Zealand & Queensland with over 25 years’ experience in the wider property industry.

He has also been actively involved in the wider property industry, holding a senior lecturing position at the University of Auckland between 1999 and 2011.

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Mathew Gibbard

Commercial & Industrial

Rotorua

MATHEW GIBBARD is a Commercial Sales and Leasing Agent with Colliers, Rotorua. He has a  focus on commercial property sales & leasing in Rotorua, Tauriko and the greater Bay of Plenty area and his specialty is the sale and leasing of hotels, motels and hospitality based businesses.

Mat is experienced in a variety of markets and property types from a broad and varied career based in Wellington, Auckland, Queenstown, Sydney, USA, and 10 years in Tauranga. Mat has had a 25 year career in sales, customer service, management, start-ups, hospitality and insurance. This is backed up by a Bachelor of Commerce and Marketing and New Zealand Certificates of Financial Services and Real Estate. These skills give him a unique insight of the Bay of Plenty commercial and industrial markets which helps add value to his real estate clients’ transactions. He can help you decide when it’s the best time to move, sell, lease or buy for your best return. He understands potential costs and risks to your investment property/business, specifically from his Insurance background dealing with fire and general, private & commercial, business, risk management, and the EQC.

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