One of Wellington’s most popular midscale suburban hotels is generating interest amongst investors as New Zealand’s tourism sector continues its post-pandemic recovery, and a limited supply of accommodation offerings lifts competition for quality assets.

Positioned on a 6,290sq m (more or less) freehold site at 5 Cornwall Street, Quality Hotel The Angus is being jointly marketed as a freehold going concern by Dean Humphries and Tim Julian of Colliers and Wayne Keene and Mark Sherlock of Bayleys.

Expressions of interest close at 4:00 pm on Wednesday, 31st October 2023.

Colliers’ Dean Humphries says the property is offered to the market at a time of high demand for visitor options.

“Hotel occupancy is continuing a consistent recovery as international visitation numbers strengthen, with room rates recently reaching historic highs.

“The average room rate across the Wellington region is now 22 percent higher when compared with levels pre-pandemic, seeing Revenue per Available Room (RevPAR) reaching new heights.

“The subject property has operated successfully for nearly four decades, consistently generating an impressive annual revenue.

“With trading performance markedly improved, hotels and accommodation offerings are one of the best-performing asset classes in the country, and a finite supply of existing stock remains tightly held amongst a select group of investors,” he says.

Located on the fringe of Lower Hutt’s Central Business District, the 3.5 star hotel features 75 rooms and 57 car parks, a full bar with 18 gaming machines, restaurant services, four conference rooms and a dedicated reception.

Facilities have a B-grade seismic rating.

Bayleys National Director of Hotels and Tourism Wayne Keene says the property is adjacent to a prestigious residential area opposite Wellington’s most popular shopping centre – Queensgate – benefitting from upside development potential and a Central Commercial zoning under the Hutt City District Plan.

“A critical position with frontage to three streets – being Cornwall Street, Waterloo Road and Bloomfield Terrace – in addition to an unlimited build height under zoning provisions and a location adjoining the largest regional shopping centre and significant residential catchment creates future development opportunity, potentially as a large-format retail site.

“The hotel’s lease and franchise agreement can be terminated on sale to allow owner-operators/new investors to immediately reposition the property as they wish, with the ability to gain vacant possession of a freehold going concern hotel extremely rare.

“This underscores the desirability of the subject property, providing an opportunity for a new purchaser to benefit from potential upside and higher returns.”

Tim Julian of Colliers adds that a new purchaser may look to immediate expansion to further increase the earnings profile or hold the asset for a future change in use.

“This could include medium/high-density residential development, a Build to Rent (BTR) project, a retirement community, short-medium or long-stay accommodation, social housing, or a mixture of these.

“Should a new owner wish to stay the status quo, they would collect income from a highly valuable asset in New Zealand’s capital and political centre, with recently opened event facilities in Lower Hutt and the CBD, in addition to Sky Stadium, Trentham Racecourse, likely to attract increased visitation.

“The fundamentals of strong demand and limited supply of quality accommodation offerings underpins the value proposition, while this substantial landholding in a strategic location, generating strong revenue, with the potential for further upside potential is an opportunity not to be missed,” he says.

To request a copy of the Information Memorandum please contact one of the marketing agents via the contact details below.