One of Auckland’s largest hotels listed for sale
Built in 2008, the 4.0-star Nesuto Stadium Hotel and Apartments comprises 144 hotel rooms, 100 self-contained apartments & restaurant & bar
Hospitality investment giant Mulpha Group has listed for sale one of Auckland’s largest and best-located inner-city hotels, the Nesuto Stadium Hotel and Apartments, amid a sustained recovery in New Zealand’s international tourism market.
The listing has been announced as Mulpha Group progresses an active capital recycling strategy for its expansive hospitality investment portfolio.
Built in 2008, the 4.0-star Nesuto Stadium Hotel and Apartments is positioned on a sizable 2,450sqm leasehold land parcel and offers a building area of circa 10,630sqm over ten levels. The asset comprises 144 hotel rooms of various configurations, 100 self-contained apartments, the new Nook Restaurant & Bar and access to 100 nearby car parks.
It offers a Grade A seismic rating with an assessed building strength of 100 percent New Building Standard (NBS).
CBRE Hotels’ Michael Simpson and Wayne Bunz together with CBRE New Zealand’s Warren Hutt have been exclusively appointed to manage the international Expressions of Interest campaign for the leasehold interest in the property.
The asset is subject to a long-term ground lease to the Ngāti Whātua Ōrākei Maori Trust Board, with a secure tenure of approximately 123 years remaining. The hotel is operated under the Netsuto brand under a management lease, with a landlord-favourable turnover rent structure. The tenant is a wholly owned subsidiary of the Japanese conglomerate and serviced apartment operator Daiwa House Group.
Mr Simpson said, “Auckland is one of the most sought-after and tightly held hotel and hospitality markets in the Pacific region, with the sale presenting an opportunity to acquire a significant foothold in a key gateway city.”
“The scale of this opportunity combined with Auckland’s hotel and tourism market recovery is expected to underpin high levels of buyer interest from both domestic and international capital sources.”
Nesuto Stadium Hotel and Apartments benefits from its prime inner-city location surrounded by some of Auckland’s strongest leisure and corporate demand drivers, including the 12,000-capacity Spark Arena, Princess Wharf, Viaduct Harbour, the Britomart Precinct and Queen Street, the city’s main commercial and retail hub.
Mr Bunz noted, “The asset underwent a significant NZ$12m expansion and renovation program in 2020, which saw 68 of the two-bedroom apartments converted into 144 hotel rooms, raising the total key count to 244, in addition to the development of the Nook Restaurant & Bar.”
“Along with the limited capital expenditure requirements, the incoming owner will benefit from the performance-based management lease, under which the tenant is liable for all operational costs and the owner receives a fixed percentage of 52.86 percent of total revenue each year, with additional income potential upon meeting a turnover threshold.”
Auckland is the country’s largest and most populous city, with a population of over 1.6 million. Approximately 75 percent of international visitors to New Zealand arrive through Auckland Airport, with the city also recognised as a key economic, cultural and events hub.
“Following the reopening of New Zealand’s international borders in August 2022, the tourism industry is enjoying a strong period of trade and growth due to significant pent-up demand from a variety of key inbound markets. As a result, Auckland saw year-to-date revenue per available room (RevPAR) grow by over 86 percent compared to the same period in 2022,” Mr Bunz said.
The Expressions of Interest campaign closes Thursday, August 24, 2023.
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