Buyers from throughout New Zealand are eyeing the increasing number of accommodation assets coming to the market in the South Island.
Michael Lough, an Investment Sales Broker at Colliers Christchurch who specialises in accommodation assets, says the properties have often not changed hands for many years but long-term owners are now looking to retire or free up capital.
“We’ve received multiple offers for many of these properties from small motel complexes through to larger scale hotels and holiday parks with large landholdings.
"New owners are either refurbishing or planning to reposition the facilities for short-term accommodation, which can yield a healthy annual return,” Lough says.
Start your property search
“Working for owners that are retiring makes it all so much more special when you can achieve a great outcome for both vendor and purchaser.”
For instance, he cites the unconditional sale of a 45-room hotel complex on 4,417sq m of land in Riccarton in Christchurch which was keenly sought in a recent campaign, attracting six offers from throughout New Zealand.
“This typifies the sort of add-value accommodation properties that are coming to the market at present.
"These older style offerings typically have good underlying land parcels and often have a larger floorplate than more recently built motel units.”
Further south, traditionally tightly held Tekapo accommodation has been changing hands.
In the past 10 months, Lough has negotiated just shy of $9 million in sales, including an immaculate historic lodge and a centrally located motel complex.
He also has a large 1.9ha potential hotel development site under contract.
“These opportunities are rare to the market and buyers don’t want to miss out. The Tekapo properties attracted widespread interest with the eventual buyers comprising both Auckland investors and a Mid Canterbury investor,” Lough says.
In Temuka, Lough recently transacted a small motel for long-term owners who were retiring, while two motel units have changed hands in Timaru.
He says strong demand in these towns is fuelled by the lack of quality accommodation and the upturn in tourism post Covid.
- Supplied by Colliers
