(12/10/22) JLL has completed the largest sale of a single
hotel asset in New Zealand history.
The Stamford Plaza Auckland, which, was originally
branded as The Regent, was managed and operated by Stamford Hotels
& Resorts as part of the Stamford Group for the past 27 years.
The property sold for NZ$170 million, the largest
ever single hotel asset in New Zealand history to go
unconditional.
The hotel was bought by a consortium comprising
the CP Group, the biggest hotel owner in New Zealand with a global
portfolio in excess of 50 assets, in association with global
investment firm Alvarium Investments via its locally owned
Auckland office, and Archipelago Capital.
Superior Room at Stamford Plaza Auckland
“We see New Zealand as a secure real estate
market, buoyed by a rebounding hospitality and tourism sector, and
well-positioned post the peak of the pandemic,” says Alvarium
Investments founder and global co-chair, Andrew Williams.
“This co-investment aligns with our long-term approach of working
with teams that have a proven high-performing record to drive
returns for our clients and our firm through timely investment
opportunities.”
The central location of the Stamford Plaza in
Auckland’s CBD makes it an attractive option for visitors to the
city, situated a 4-minute walk from Britomart Train Station, and
just 10 minutes from the Te Waihorotiu Station (Aotea) City Rail
Link hub currently under construction. Once completed, Karangahape
Road and Maungawhau (Mt Eden) will be three and six-minutes’
travel respectively from the station.
“Stamford Plaza is the pride and joy of the
Stamford Group and was especially hand-picked by Mr CK Ow,
Chairman of the Group, during his strategic acquisitions in the
‘90s throughout Australasia. The Stamford brand has been
outstanding in adding value to the quality of 5-star hotels in New
Zealand. In October 2008, the Stamford Group not only upgraded the
hotel, but added 149 ultra-high-end luxury apartments,
contributing to the change in the city-landscape,” said Thomas Ong,
Chief Operating Officer of Stamford Hotels & Resorts. “The divestment represents a recalibration of the
group’s investment strategy, which has made in-roads into other
real estate classes within the global marketplace, such as trophy
asset properties in the City of London. The group is well-capitalised
with no debts and will continue to seek out investment
opportunities whenever it can add value. In relinquishing Stamford
Plaza, the group is grateful for the long-serving high calibre and
loyal hotel professionals remaining within the premises who will
continue to be an asset to the incoming operator.”
Nick Thompson, JLL Director Hotels & Hospitality,
says finalising a deal of this magnitude proves there is a strong
appetite across the New Zealand hotel sector thanks to positivity
in the market despite recent turbulence in the economy.
“The hotel market is trending upwards following
two years of uncertainty, and that movement is indicative of the
strength of the market,” Thompson said. “Hotel investors tend to take a longer-term
approach to asset transactions, so hotels hold up strongly when
headwinds impact other real estate sectors. The
sale of the Stamford Plaza is a record sale for a single hotel
asset in New Zealand, pointing to the resilience of the hotels
market complemented by continued interest from international
investors over the past 30 months. For the consortium, purchasing a 5-star hotel in
Auckland’s CBD at a time when the market is rebounding represents
a fantastic opportunity. Plans to refurbish and rebrand the
Stamford Plaza under a major international name are already
underway, although branding is still to be decided.”
The last equivalent hotel transaction in New
Zealand in excess of NZ$100m was in 2006 when the Rendezvous
Hotel, now the Grand Millennium Hotel, sold for NZ$113m via JLL
agents.
Just over a month ago, Sir Stamford Circular Quay in
Sydney sold for AU$210.5m, equivalent to over AU$2m per room.
The
Stamford Plaza Auckland sale equates to more than NZ$700k per room
(across 286 rooms and suites) once planned refurbishments are
completed.
Tag along with a postie for the day. “Neither snow nor rain nor heat nor gloom of night stays these couriers from the swift completion of their appointed rounds.” These words are associated with the American postal worker. But even tougher mail deliveries worldwide rely on boats, seaplanes, four-wheel-drives, and […]
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