Two Christchurch hotels go on the market

Novotel Christchurch Cathedral Square

In New Zealand, two of Christchurch's largest hotels--both owned by Host Hotels & Resorts--have gone on the market. Colliers International is selling the 154-room Novotel Christchurch and the 155-room Ibis Christchurch as one parcel or individually.

Dean Humphries, Colliers' national director of Hotels New Zealand, told the New Zealand Herald that the assets represent the largest portion of hotel accommodation to be offered for sale in the South Island over the past five years, and that both hotels are subject to a long-term leasehold tenure. International expressions of interest are set to close on Wednesday, April 27.

New Zealand's tourism market is currently undergoing a period of "unprecedented growth," Humphries told the paper. "Nearly 3.2 million visitors arrived here over the past 12 months. That's an increase of around 10 percent year-on-year."

As such, he said, hotel values are increasing as both revenue and profitability improve. "With further growth in visits anticipated and limited supply of hotel rooms in the pipeline, conditions suggest prospects for the local hotel sector will remain buoyant over the short- to medium-term." In the last six months alone, Colliers has sold the Novotel Ibis Auckland Ellerslie, Novotel Queenstown Lakeside and Novotel Wellington.