One of the most popular hotels in the sunshine capital of New Zealand has sold after a short targeted campaign.

The 80-guest room hotel at 40 Waimea Road in Nelson defied all notions of an uncertain market to receive significant interest from a targeted pool of competitive buyers.

Originally built in the 1970s, The Hotel Nelson has been refurbished extensively over its time including two completely new wings between 2005 and 2007. It now features a host of facilities and amenities including an on-site bar and restaurant, heated outdoor swimming pool, conference spaces, and extensive dedicated carparking.

The total hotel site area extends 7,877sqm with a 3,598sqm floor area and was sold with vacant possession.

JLL Brokers Nick Thompson and Harry Fergusson were exclusively appointed to market the property for sale off-market by way of expressions of interest.

Thompson says while the current environment remains challenging for hotel operators, the long-term picture is looking positive which is what savvy investors are capitalising on.

“We ran a discreet off-market campaign for The Hotel Nelson but still we were impressed by the sheer amount of interest we received. This unwavering demand means sellers of hotel and hospitality assets in New Zealand are receiving returns akin to before the pandemic,” says Thompson.
“Looking to 2022 and beyond we expect New Zealand's ability to remain relatively COVID free and to only have short interruptions to daily life will likely mean a further influx of international visitors as borders are re-opened and international connectivity regained.”

Fergusson says this is the third hotel in Nelson that they’ve transacted in just the last six months, with demand in the area being immense.

“Nelson is one of New Zealand’s fastest growing cities and continues to be a popular choice for relocating to for a better lifestyle, more sunshine hours, and a relaxed culture. The city experienced a level of economic stability throughout the pandemic due to its continued popularity with domestic tourists,” says Fergusson.

“The Nelson accommodation market is therefore well-placed to continue to benefit from existing and future demand drivers over the medium to long term, and this is being recognised by local and international investors with solid enquiry for accommodation offerings and very limited listings.”

To request a sales analysis please contact the selling agents JLL Brokers Nick Thompson and Harry Fergusson via the below contact details.

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