Chance to buy Auckland apartment hotel

4:07 PM Friday April 6, 2018 True Commercial

Located at 40 Beach Rd, the 10-level hotel occupies a prime 2450sq m site. Photo / Supplied

The Waldorf Stadium Apartment Hotel in the heart of Auckland CBD is on the market for sale through Colliers International Hotels and CBRE Hotels.

The 178-unit strata title development is to be sold subject to a new 11-year performance lease to Japanese serviced apartment conglomerate Daiwa House Group, which recently acquired the Australia and New Zealand Waldorf serviced apartment business with further plans to expand in the region.

The property is being sold by an international expression of interest campaign closing at 4pm on May 16.

Dean Humphries, national director of hotels for Colliers, says the divestment of this accommodation asset represents the first major hotel sale in the Auckland CBD since the Hilton Auckland sold in 2012.

“As a result, we’re anticipating unprecedented interest from a wide range of international and domestic investors given the exceptionally strong trading conditions in the gateway city,” he says.

Wayne Bunz, international director of CBRE Hotels, says the development is being offered for sale subject to a long-term management lease to one of the largest serviced apartment providers in the region, Daiwa House Group.

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Stadium Apartment Hotel is for sale in an era when the sector’s occupancy rate is 86 per cent. Photo / Supplied

“This strong tenant covenant will provide investors with secure long-term returns moving forward.”

Built in 2008, the Waldorf Stadium Apartment Hotel is in downtown Auckland close to the harbour’s edge, the 12,000-capacity Spark Arena, the Britomart precinct and just 500m from Queen St; the city’s main commercial and retail thoroughfare.

The 10-level hotel comprises a mix of studio, one, two and three bedroom fully self-contained apartments.

Located at 40 Beach Rd, the 10,630sq m hotel is situated on a prime 2450sq m parcel of land, which is subject to a long-term ground lease to one of Auckland’s largest inner-city land owners.

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The hotel comprises a mix of studio, one, two and three bedroom fully self-contained apartments. Photo / Supplied

Humphries notes that it is common for a number of hotels in Auckland to be located on leasehold land due to their closeness to the water’s edge, with the majority of this land owned by entities like Ngati Whatua Orakei and Auckland Council.

Bunz says the sales campaign comes at a time of unprecedented growth in Auckland’s hotel sector.

“The occupancy rate is 86 per cent and the market has witnessed RevPAR [revenue per available room] growth of nearly 13 per cent this year.”

He says Auckland is one of the best performing hotel markets in the Asia-Pacific region, so investors can expect strong returns moving forward - underpinned by one of the largest international serviced apartment operators in the world.