Record hotel transactions despite tourism and pandemic woes

A staggering $400 million of hotel deals settled, representing a huge 33% increase on the previous highs of 2010 and 2015 when $300 million of sales were reached in each of those years, and nearly three times the 10-year average of $150 million per annum.

A number of high-profile assets were sold last year, including the five-star Sofitel Queenstown, 280-room Rydges Wellington, and the recently completed luxury lifestyle hotel QT Auckland.

Factors contributing to the increase in activity vary but the pandemic is a main contributing factor, says Dean Humphries, Colliers International hotels director.  “Whilst there have been few distressed sales, some owners have been more motivated to sell, especially if a buyer presents a fair, non-distressed offer.”

One of the big players to emerge in the past three years is NZ Hotel Holdings, a strategic partnership between the $60 billion NZ Super Fund, The Russell Property Group, and Lockwood Property Group.