Colliers International is marketing the sale of the 203-room Holiday Inn Rotorua. Dean Humphries, hotels national director at Colliers International, said the property is the first hotel to be listed for sale in Rotorua since 2011.
The hotel is part of the Whakarewarewa Living Māori Village and geothermal park. IHG took over management of the hotel in 2011, and the property's guestrooms and guest facilities recently underwent a renovation. The hotel is part of IHG's New Zealand portfolio, which consists of seven hotels across Crowne Plaza, Holiday Inn and Intercontinental brands. These properties are located in Wellington, Auckland, Christchurch, Queenstown and Rotorua.
Humphries said Rotorua is one of the top-performing markets in New Zealand. Hotel occupancy in the region has reached nearly 80 percent, while room rates have been rising close to 30 percent over the past four years.
“Being only three hours’ drive from Auckland, New Zealand’s main gateway port of entry, and located on the international tourism route, Rotorua remains one of the most highly sought-after destinations in the country,” Humphries said in a statement.
The lack of new hotel projects in Rotorua, apart from a new 130-room Pullman Hotel, is expected to attract investment to New Zealand in the coming years, leading to an expansion of the market.
“As the lucrative Chinese and American markets quickly move away from the lower-yielding tours and group travel options to freer independent travelers, we expect a significant uplift in room rates to regions like Rotorua. This will bring the region more closely in alignment with our other major tourist destination, Queenstown, which currently has average room rates more than $100 higher than those in Rotorua.”
This recent offering follows Colliers' recent negotiation of the sale of two hotels in Wellington to Singapore-based owner and operator Naumi Hotels. Naumi acquired the properties from CQ Hotels Wellington for an undisclosed sum. The hotels will expand Naumi's portfolio by 178 guestrooms.