Oaks Hotels & Resorts NZ, a division of Bangkok-based MHG, has paid NZ$11 million for the Metropolis management rights and 19 apartments in a deal negotiated by Resort Brokers New Zealand.

The sale was recently confirmed and settled early May following the granting of NZ Overseas Investment Office (OIO) approval earlier this year.

It signals an exciting expansion in the Pacific by this quality global hotel group with a significant acquisition in an iconic and exclusive Auckland building, located in the hub of the city’s food and fashion precinct.

The management rights and tranche of apartments were sold by a private individual investor who also leased a further 19 apartments to the hotel group.

Since the sale Minor Hotel Group have received enthusiastic support from a number of other owners who have elected to include their apartments in the hotel pool.  There is a belief by many owners that the complex will return to its former glory as a high quality hotel with more vibrancy and professional image that may have been lacking in recent years. This being the case then owners might look towards capital value growth due to the renewed prestige. 

Metropolis, located in Courthouse Lane, within easy walking distance of Auckland Harbour waterfront, Albert Park, Auckland Art Gallery, and main CBD retail strip, has approximately 400 apartments of which in excess of 60 are currently in the hotel letting pool.

The entry of this first class international hotel operator will be a major boon for investor apartment owners, so Minor expect to quickly expand its room inventory with additional units currently in the hands of outside agents or managed by owners direct.

Resort Brokers NZ said the Metropolis asset was the most valuable management rights parcel ever sold in New Zealand.

Oaks chief operations officer, Mike Anderson, and MHG Australia commercial officer, Lachlan Hoswell put the deal together with Resort Brokers New Zealand over a period of around 1 year.

MHG has signaled it will channel significant investment into the Metropolis tower to upgrade all units under its management to the required AVANI 4.5 to 5-star standard and establish quality reception and concierge services.

The tower boasts a 22-metre indoor heated swimming pool, spa, sauna and gymnasium.

MHG’s international hotel portfolio now numbers in excess of 150 properties across 22 countries, operated under brands including Anantara, AVANI, Elewana, Four Season, Marriott, Oaks, PER AQUUM, St Regis and Tivoli.

Oaks Hotels & Resorts, headquartered in Australia, currently has more than 50 hotels in Australia, Thailand, Dubai, Abu Dhabi, India, and New Zealand, where it operates two hotels in Queenstown – Oaks Club Resort and Oaks Shores.

Plans to introduce their upscale AVANI brand in the Metropolis tower coincide with preparations to debut AVANI across the Tasman on Australia’s Gold Coast, where Resort Brokers Australia also sold them the management rights to a Broadbeach apartment tower now under construction.

AVANI Broadbeach Residences is set to open in time for the 2018 Gold Coast Commonwealth Games in April next year.

Launched by MHG in 2011, AVANI Hotels & Resorts is a vibrant upscale hotel brand that offers relaxed comfort and contemporary style in city and resort destinations to “guests who value the details that matter”.

The group has previously announced its intention to rapidly grow the AVANI brand in major centres from Asia and the Pacific to India, the Indian Ocean and the Middle East.

Learn more about AVANI hotels.

This article first appeared on Resort Brokers New Zealand.

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