New Zealand's Novotel Ibis Ellerslie hits the market

The 247-room Novotel Ibis Hotel in Auckland's Ellerslie is on the market, according to New Zealand's Stuff, and it is reportedly the largest hotel to go on the market in New Zealand in five years. The hotel, owned by Host Hotels and Resorts, could fetch as much as $50 million.

Host owns other hotels in New Zealand as well, including Novotels in Queenstown, Wellington and Christchurch.

Colliers International is handling the sale, and national director of hotels Dean Humphries told Stuff that conditions were right for quality hotels to hit the market.

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"More and more hotel investors are looking to establish a foothold in our booming market, and Auckland is increasingly being recognised as an international investment destination," he said.

He was expecting a record price for the Ellerslie hotel, based on recent sales such as the Hotel Grand Chancellor at Auckland Airport and the Kingsgate Hotel in Wellington.

Colliers' latest hotel & tourism report showed the market was enjoying strong first-quarter growth this year, with high occupancy and surging room rates.

Auckland and Queenstown were the star performers, achieving revenue per available room growth of 20 percent and 18 percent, respectively, in the first quarter of this year compared a year ago.

In Auckland, room occupancy had surged to over 80 percent, and rates had increased by 8 percent over the past 12 months.