Major tourism investment, development opportunity

As tourist arrivals into New Zealand continue to grow, CBRE is offering investors the opportunity to own, operate and further develop Lake Ōhau Lodge and Ōhau Snow Fields in the Southern Alps.

First taken to the market last year, the property was contracted to sell but has become available again following a change in circumstances for the buyer.

CBRE is now presenting the asset to buyers amid the continuing post-Covid domestic and international travel rebound and a highly positive outlook for ongoing tourism growth.

Tim Rookes, managing director of CBRE Christchurch, said that with interest rates expected to begin to decline and visitor numbers having strongly recovered, the lodge property and snow fields offer a highly significant opportunity.

“This is a once in a lifetime chance to secure a tourism asset in the Southern Alps with huge potential to develop a high-value accommodation destination, capturing the expected continuation of the growth in post-pandemic tourism.”

Inbound visitor numbers recovered to 90 per cent of pre-Covid levels in the March 2024 year, with 3.18 million overseas visitor arrivals - nearly 1 million more than the previous year, according to StatsNZ.

The lodge and snow fields, offered for sale following 33 years of family ownership, comprise a genuine trophy investment that captures the essence of South Island tourism.

The sale offers a “dream opportunity” for visionary buyers looking to make their mark in the growing global leisure and adventure travel market, said Rookes.

“We consider this a truly unique and unreplicatable opportunity to own and operate Lake Ōhau Lodge, along with running the Ōhau Snow Fields under concession from the Department of Conservation. ?hau is more than just a lodge and ski field - it’s a New Zealand tourism icon, renowned for its spectacular scenery and exceptional year-round recreation, in a pristine alpine setting which leaves visitors awestruck.”

The 10-hectare lodge property, located off State Highway 8 in the Mackenzie high country, occupies a stunning lakefront setting surrounded by the majestic Southern Alps. It is being sold as a freehold going concern, with expressions of interest from potential purchasers due by July 3.

Lake Ōhau Lodge is fondly known by many New Zealanders and international travellers who have visited for skiing, mountain biking, trout fishing, weddings, conferences or just to enjoy the lodge’s convivial surroundings, legendary high country hospitality and breathtaking views.

First established in 1951, the existing lodge is steeped in history; while its lakeside title is favourably zoned for accommodation use. The snow fields, which extend across 250 hectares of skiable terrain, are located a short drive from the lodge.

Rarely do investment opportunities become available to purchase that offer the genuine exclusivity, natural beauty and significant existing ski and accommodation facilities that the lodge and snow fields present, said Rookes.

“The sale also offers a generational opportunity to embark on the next stage of Lake Ōhau Lodge’s development, which could include renovation of the existing lodge, extension of the facilities onto additional building sites, or building an entirely new high-end lodge to capitalise on the growing luxury travel market.”

The potential to renovate the existing 72-room lodge or develop a new luxury accommodation offering opens up endless possibilities for creating an unforgettable experience for guests, surrounded by the picturesque beauty of the Southern Alps.

“Exciting concepts have been drawn up for two undeveloped building sites on the property, capturing spectacular views up the lake. We have also been in discussions with global luxury accommodation operators who have expressed interest in operating a new lodge at ?hau on behalf of the new owners.”

From humble beginnings, hosting 5,000 visitor nights annually when the current owners took over, the Lake Ōhau Lodge business has developed legendary status, attracting 25,000 visitor nights per year – having recovered to pre-Covid visitor levels and still growing.

One of the lodge's most significant advantages is its strategic location along the famed Alps2Ocean Cycle Trail, which attracts visitors year-round. This presents an exciting avenue to continue to appeal to the booming adventure tourism sector and cater to the increasing demand for upscale accommodation among outdoor enthusiasts seeking world-class experiences.

The Ōhau Snow Fields further enhance the allure of this extraordinary offering, providing a strong attraction which ensures the lodge’s accommodation and restaurant offerings are often fully booked during the winter months. The USA and Norwegian alpine ski teams also regularly train at Ōhau Snow Fields during the New Zealand winter.

Te Araroa Trail also passes close to the lodge, providing a welcome rest stop for hikers on the increasingly-popular trail spanning the length of New Zealand.

Other outdoor experiences available in the local area include Aoraki/Mount Cook, Tasman Glacier, trout fishing, boating, heli-skiing and stargazing, with the property being located within the Aoraki Mackenzie International Dark Sky Reserve, said Rookes.

“Over the years, the lodge has become an integral part of the South Island regional tourism landscape, strongly supported by the key attractions of the Ōhau Snow Fields and the world-famous Alps2Ocean bike trail. The synergy between these exceptional offerings has elevated Lake Ōhau Lodge into a sought-after destination, drawing adventure seekers from all corners of the globe.”

Lake Ōhau Lodge and Snow Fields are located in an accessible yet exclusive location in the heart of the Southern Alps, between Queenstown (125km to the south-west), Christchurch (230km to the north-east) and Dunedin (190km to the south). Both Twizel and Ōmarama are just 30 minutes away, while helicopter and fixed wing access are supported with a heli pad and airstrip.

- Supplied by CBRE