The Stamford Plaza Auckland, originally The Regent, has been sold for a record NZ$170 million, making it the largest sale of a single hotel asset in New Zealand history.
The property, which has been managed and operated by Stamford Hotels and Resorts for the past 27 years, was sold to a consortium comprising New Zealand’s biggest hotel owner, CP Group, in association with global investment firm Alvarium Investments, and Archipelago Capital.
The 5-star hotel in Auckland’s CBD will be refurbished and rebranded under a major international name which is yet to be determined.
“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,” said Stamford Hotels and Resorts Chief Operating Officer, Thomas Ong,
“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.”
Alvarium Investments Founder and global Co-Chair, Andrew Williams, described it as an opportune time to capitalise on current market conditions.
“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,” he said.
“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 deal, which was brokered by JLL, will be settled later this year.
JLL Director Hotels & Hospitality, Nick Thompson, said there is a strong appetite across the New Zealand hotel sector helped by positivity in the market.
“The hotel market is trending upwards following two years of uncertainty, and that movement is indicative of the strength of the market,” he 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.”
The last equivalent hotel transaction in New Zealand in excess of NZ$100 million was the sale of the Rendezvous Hotel, now the Grand Millennium Hotel, which sold for NZ$113 million in 2006 via JLL.