New Zealand continues to attract investment dollars for hotel projects. The Chinese company behind Auckland's Park Hyatt project in the Wynyard Quarter (pictured) is set to purchase a nearby site to build its second hotel in the city. This new project is reportedly poised to attract more than NZ$300 million in investment, and the firm, Fu Wah International, is also considering additional investment opportunities in Queenstown and Wellington.
Fu Wah President Chiu Yung said that the new development would get a midscale or upscale hotel and apartment complex. Fu Wah's South Pacific area general manager, Richard Aitken, said the firm had secured an unconditional agreement to purchase the site, currently owned by a company associated with Goodman Property. The deal is expected to close by the end of next month.
As noted previously, New Zealand has reported strong tourism numbers in recent months. And while new hotel rooms are sorely needed, locals are not pleased with the number of international investors buying up land and existing properties. For this hotel, Aitken said the land acquisition did not require Overseas Investment Office approval because the purchase price was below the $100-million threshold and the site was not declared to be "sensitive."
The upcoming Park Hyatt hotel is expected to cost $200 million, but Fu Wah did not purchase the land for that development. Instead, Panuku Development Auckland, a council organization, has retained ownership. The hotel broke ground in March and will open in 2018.
Source: New Zealand Herald