With rising numbers of international visitors to New Zealand including South East Asian tourists, the Cosa Hotel for sale in Christchurch, by Resort Brokers Australia and Resort Brokers New Zealand, is set to help the shortage of quality mid-scale 3.5-star rooms.
Resort Brokers Australia, in association with Resort Brokers New Zealand, have launched an international Expressions of Interest campaign to sell the 88-room 3.5-star hotel being built at the corner of Colombo and Salisbury streets.
The asset, identified by the agents as the Cosa Hotel, is being developed by Christchurch-based Lepdon Holdings in collaboration with innovative international modular construction company, TLC Modular, based in Vietnam.
“It involves a revolutionary process whereby rooms are manufactured and fitted out off-site under quality-controlled factory conditions, then delivered to the site for assembly in strict accordance with New Zealand’s building codes,” said Resort Brokers Australia national sales manager, Trudy Crooks.
Ms. Crooks confirmed the Cosa Hotel modules had been completed in TLC’s Vietnam factory and delivered to Christchurch, with the project on track to meet its Q1 2018 completion target.
New Zealand’s tourism industry has overtaken the dairy industry as the nation’s number one export earner. In the year to August 2017, a new annual record number of 3.67 million international visitors arrived, up 9 percent on the previous year. By 2023, annual international visitor arrivals are expected to reach 4.9 million, eclipsing the country’s population of 4.7 million and representing annual growth from 2017 of 4.8 percent.
South East Asia is an emerging market for Tourism New Zealand with significant growth predicted in the near future. They are focussed on leveraging the region’s potential to help spread visitation across the year, with many visitors from Indonesia, Malaysia, the Philippines and Singapore tending to travel in the off-peak shoulder seasons. Korea has one of the most-travelled populations in the world, and outbound numbers are increasing so it has big opportunities for New Zealand. Research shows Japanese youth are motivated by adventure and refreshment and active boomers by nature and the outdoors, which is great news for New Zealand as these types of activities exist in abundance.
“Now the partners have decided to sell the asset, so we are offering the property with vacant possession, although there is still the option to take up the original Ramada Encore franchise agreement,” said Ms. Crooks. “Christchurch has experienced a shortage of hotel accommodation since the 2010-2011 earthquakes. What limited new supply has entered the pipeline is largely focused in the 4-star and above categories, leaving a distinct shortage of quality mid-scale 3.5-star stock.”
Resort Brokers Australia senior broker Glenn Millar said the new Christchurch Hotel was forecast to show an annual net operating profit of $2.44 million by Year 3, based on professionally prepared financial projections.
“Its prime 1,275-square-metre CBD site is within walking distance of shopping, dining, entertainment and key attractions including the Avon River, the new world-class Christchurch Convention Centre now under construction, and the planned $500 million 25,000-seat Christchurch Stadium.
The Expressions of Interest period for the sale of the Cosa Hotel Christchurch will close on Friday, November 17.
If you would like further information and images visit the Resort Brokers Australia or Resort Brokers New Zealand website.
If you wish to discuss the opportunity contact Wayne Keene of Resort Brokers New Zealand or Trudy Crooks of Resort Brokers Australia via the contact details below.
This property for previously published on The Hotel Conversation.
See also:
Construction set to start on $240 million Christchurch Convention Centre
First look inside the QT Queenstown Hotel opening December 2017