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.