A boutique beachfront resort on the pristine shores of Titikaveka Beach on Cook Islands’ largest and most visited island is being offered for sale, presenting an opportunity for investors and hospitality operators looking for a prime foothold in the Pacific tourism market.
Bayleys Hotels, Tourism and Leisure national director Wayne Keene is marketing the MOTU Beachfront Art Villas - a sustainable art resort set on 4,470sqm (more or less) in the Cook Islands - alongside colleagues David Bayley and Phillip Toogood.
The property features in Bayleys’ latest Total Property portfolio, with buildings and the accommodation business offered for sale as a going concern by negotiation.
“MOTU Beachfront Art Villas offer an exceptional opportunity to acquire a thriving luxury resort that has earned a collection of accolades, including a spot in the Top 1% of Resorts Worldwide on the review platform TripAdvisor and the title of Rarotonga’s Top Accommodation.
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“Conceived as the Pacific’s first ‘art resort’, the visionary owners acquired the former Royale Takitumu in 2017 and transformed it into a distinctive retreat, where each of the 10 luxury villas features artwork by Pacific artists. Their commitment to sustainability is evident through the use of eco-friendly products, electric vehicles, and cutting-edge wastewater management systems, underscoring both innovation and environmental responsibility.
“This fusion of art, luxury surrounds, and an emphasis on environmental stewardship sets MOTU apart from other island destinations, reflected by robust financial performance and an occupancy rate exceeding 90 percent in recent months,” Keene says.
“The resort’s 5-star rating and impressive 25 percent guest return rate highlight not only the exceptional service provided by its onsite management team but also its strong commitment to social responsibility, with profits supporting local healthcare, education and the arts.”
Set on one of Rarotonga’s most desirable beaches with all-tide swimming and snorkelling, the refurbished villas enjoy a mixture of beach, lagoon and garden views, each with private patios, kitchenettes and air-conditioning.
The land MOTU occupies is secured by two leases extending through 2079, offering a stable foundation for future development. The current ground rent stands at NZD$10,108, with an additional rental calculated at two percent of revenue (excl. VAT), estimated at NZD$16,244 for the year-ending March 2024.
Bayley Corporation executive director David Bayley says that with a strong management structure, MOTU is poised for a seamless transition to new ownership.
“By law, all freehold land in the Cook Islands is governed by families with a maximum lease of 60 years. MOTU’s lease structure, being the maximum with 55 years remaining on each lot, allows for extensions through negotiation with the landowners, ensuring long-term stability for potential investors.
“The current owners have streamlined operations and increased direct bookings, which now account for 65 percent of reservations, reducing reliance on traditional travel wholesalers.”
As the Cook Islands tourism industry strengthens – evidenced by a 113 percent increase in visitor arrivals last year – MOTU’s performance has outstripped the broader market, achieving record revenue and bed nights, and surpassing pre-pandemic figures.
Bayleys Fiji and South Pacific managing director Phillip Toogood says the resort presents several key pathways for growth.
“With demand for high-quality accommodation and the government’s focus on sustainable tourism, the business is well-positioned for continued success. The resort has an excellent reputation, operates profitably and features opportunities to enhance the guest experience further to maximise returns.
“Plans to utilise an eleventh studio as a new villa, introduce resort rental cars, and develop a spa are just the beginning. The resort is exploring a solar energy initiative supported by a Federal German Government grant, which could benefit both the resort and the local community by providing sustainable energy solutions.
“With this growth potential and an established reputation as one of the region’s most successful and enjoyed destinations, the property will appeal to many potential purchasers. The combination of a long lease, prime beachfront location, and the resort’s sustainability credentials make it a compelling opportunity in one of the most beautiful locations in the world.”
- Supplied by Bayleys
