Resort Brokers Australia, in association with Resort Brokers New Zealand, have launched an international Expressions of Interest campaign to sell the 88-room 3.5-star hotel being built at the corner of Colombo and Salisbury streets.

The asset, identified by the agents as the Cosa Hotel, is being developed by Christchurch-based Lepdon Holdings in collaboration with innovative international modular construction company, TLC Modular, based in Vietnam.

Lepdon Holdings, headed by experienced local accommodation owners Gary and Ann LePine, had planned to operate the property themselves.

Earlier this year, they struck a franchise agreement with the giant Wyndham Hotel Group to introduce a new brand, Ramada Encore, to New Zealand’s skyrocketing visitor market.

“Now the partners have decided to sell the asset, so we are offering the property with vacant possession, although there is still the option to take up the original franchise agreement,” said Resort Brokers Australia national sales manager, Trudy Crooks.

Ms Crooks, Resort Brokers Australia senior broker Glenn Millar, and Resort Brokers New Zealand director Wayne Keene have been appointed as exclusive marketing agents.

Development of the hotel, using TLC’s high quality modular construction method, is well advanced, with completion due in the first quarter of next year.

The offering is likely to be keenly contested at a time when hotel property is outperforming other asset classes and New Zealand’s visitor market is growing at a record-breaking pace.

“Hotel room stock is currently insufficient to meet the demands of New Zealand’s rapidly expanding visitor market,” Ms Crooks said.

“Christchurch in particular has experienced a shortage of hotel accommodation since the 2010-2011 earthquakes.

“What limited new supply has entered the pipeline is largely focused in the 4-star and above categories, leaving a distinct shortage of quality mid-scale 3.5-star stock.”

Mr Millar said the new Christchurch Hotel was forecast to show an annual net operating profit of $2.44 million by Year 3, based on professionally prepared financial projections.

“Its prime 1,275-square-metre CBD site is within walking distance of shopping, dining, entertainment and key attractions including the Avon River, the new world-class Christchurch Convention Centre now under construction, and the planned $500 million 25,000-seat Christchurch Stadium.

“Modular construction has been identified as an ideal, innovative solution to overcome impediments to hotel development and delivery, faster and more cost-effective,” he said.

“It involves a revolutionary process whereby rooms are manufactured and fitted out off-site under quality-controlled factory conditions, then delivered to the site for assembly in strict accordance with New Zealand’s building codes.” 

Ms Crooks confirmed the Cosa Hotel modules had been completed in TLC’s Vietnam factory and delivered to Christchurch, with the project on track to meet its Q1 2018 completion target.

“Smart contemporary design and modern facilities will appeal to high-volume, value-conscious domestic and international visitor markets,” she said.

“In particular, at a time when millennials are shaping the future of the hospitality industry, this hotel perfectly reflects their needs with engaging communal spaces, a sharp design aesthetic, digitally switched-on, and configured for convenience.”

The entire ground level is devoted to open and inviting common areas and guest amenities, including multiple lounges, a large café and breakfast area, and two meeting rooms.

Operational areas include an office and luggage room behind reception, a commercial kitchen and adjacent kitchen store, linen storage, staff areas and a one-bedroom manager’s unit.

New Zealand’s tourism industry has overtaken the dairy industry as the nation’s number one export earner.

In the year to August 2017, a new annual record number of 3.67 million international visitors arrived, up 9 per cent on the previous year.

By 2023, annual international visitor arrivals are expected to reach 4.9 million, eclipsing the country’s population of 4.7 million and representing annual growth from 2017 of 4.8 per cent.

The visitor economy is crucial to Christchurch and Canterbury.  Lonely Planet (2013) listed Christchurch as one of the Top 10 cities to visit worldwide and, on The New York Times' list of 52 Places to Go in 2014, Christchurch ranked No. 2.

Recently, Canterbury Development Corporation confirmed domestic and international visitor spending in Christchurch during the summer peak season was back at pre-earthquake levels. 

Reports show, for YTD March 2017, occupancy in Christchurch was 85.1%, with ADR sitting at $169.84 and RevPAR at $144.55. (Source: Tourism Industry Aotearoa)

The Expressions of Interest period for the sale of the Cosa Hotel Christchurch will close on Friday, November 17.

For further information and images visit the Resort Brokers Australia or Resort Brokers New Zealand website.

To discuss the opportunity contact Wayne Keene of Resort Brokers New Zealand or Trudy Crooks of Resort Brokers Australia via the contact details below.

See also:

Construction set to start on $240 million Christchurch Convention Centre

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