The hotel industry is driving the city's recovery, with developments underway such as the Cosa Hotel for sale in Christchurch.
Although many public projects have been delayed in Christchurch's commercial rebuilding process, it is set to “peak during mid-2017 and mid-2018” according to a report by the government's Greater Christchurch Group (GCG). It should surpass residential as the main driver of the city's recovery. An estimated $6 billion is still to be spent in the commercial sector, much of it on public projects such as the long-delayed Convention Centre and Metro Sports Facility.
Christchurch developer Ernest Duval said commercial opportunities are looking positive for the hospitality industry, particularly hotels, as the capacity has been increasing, even though it is still around 80 per cent of pre-earthquake levels.
"A number of hotel operators have purchased property around the city, so they've taken a position," Duval said. "We'll see a progressive expansion of hotel space in the next few years to address the demand created as a consequence of the Convention Centre."
There are risks in this sector, though, said Duval. Even though overall hotel capacity was down, occupancy rates were not. "We don't want to have pre-quake levels of accommodation unless we're going to get the people coming here and staying here."
The limited mount of new hotel rooms being built have been on the luxury end of the market, which has left an opportunity for quality mid-scale 3.5-star stock.
To help fill this gap, 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, headed by experienced local accommodation owners Gary and Ann LePine, who had originally planned to operate the property themselves.
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.
“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 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.