Archive | Hotels

Accor to run Chows’ Rotorua hotel

NZAX-listed property company Chow Group Ltd’s management company, CGML Ltd, has awarded the management contract for its Rotorua hotel to AccorHotels.

CGML bought the 30-year-old, 10-storey, 8000m² office Zens Centre at 1135 Arawa St in 2015 and is converting it into a 130-room hotel.

Director John Chow (pictured in front of the building with mayor Steve Chadwick) said it would carry a 5-star brand. Work on architectural plans has started and the conversion should start in July. It’s expected to open at the end of 2018 or early 2019.

AccorHotels already operates a Novotel in Rotorua and the ibis Rotorua Lakeside.

Ms Chadwick said the retail & tourism sectors were doing extremely well in Rotorua and its economy was performing above the national average: “Rotorua is growing & thriving. Our population now exceeds 70,000 and continues to grow, and unemployment is dropping. It’s important that we continue to build on these positive achievements, and projects such as the Chow Group’s new upscale hotel are critical to our success, improving our tourism infrastructure and creating work opportunities.”

Attribution: Company release.

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Hotel proposal unveiled for Simunovich site on Viaduct

Viaduct Harbour Holdings Ltd unveiled plans yesterday for a luxury hotel to replace the Simunovich Fisheries building at One Market Square – on the Viaduct Basin and across the water from Fu Wah International Group’s Park Hyatt Hotel rising in the Wynyard Quarter.

Colliers has been appointed to undertake a global search for a development partner. Its international expressions of interest campaign will close on Tuesday 2 May.

The proposed 165-room hotel would have a 12,000m² floor area on 12 floors on a 1288m² footprint, and a rooftop bar.

One Market Square on the Viaduct Basin cbd towers to left & right in the background.

Viaduct Harbour Holdings chief executive Angela Bull said the company would make the preliminary design by Warren & Mahoney available to the successful development partner, and the development partnership model would keep the waterfront site in New Zealand ownership.

Ms Bull said the Market Square site was exceptional, directly facing the harbour on 2 sides and offering stunning views of Auckland.

“Viaduct Harbour is an outstanding lifestyle precinct in Auckland with unrivalled access to the water, quality restaurants, apartments & an international marina. One Market Square is perfectly positioned for a world-class hotel that will add to the vibrancy & attractiveness of the precinct.”

Colliers national hotels director Dean Humphries said the surge in visitor arrivals in recent years had led to a critical shortage of quality hotel accommodation.

“The Government predicts that Auckland will likely need another 4300 new hotel rooms over the next decade to keep up with current demand projections. The timing is right for this unrivalled site to be developed to its optimal use.”

The owners of Viaduct Harbour Holdings Ltd (the families of Mark Wyborn, Trevor Farmer, Alan Gibbs & Ross Green) bought 28ha around Viaduct Harbour from Ports of Auckland Ltd in 1996. The company has retained the land interest and sold leasehold interests.

The hotel would replace the Simunovich Fisheries building fronting Market Square at the turn of the Viaduct Basin towards the Lighter Basin. Across the water, the ASB Centre and the Park Hyatt on Halsey St.

The Park Hyatt

Across the water on Auckland Council leasehold land in the Wynyard Quarter, the joint venture between local company Hawkins Group Ltd (sold by the McConnell family to Downer EDI Ltd of Australia 10 days ago) & China Construction NZ Ltd is 9 months into construction the Park Hyatt, which is scheduled for completion late next year. It will have a total floor area of 29,000m² & 195 rooms.

China Construction (China State Construction Engineering Corp Ltd) is headquartered in Shanghai and listed on the stock exchange there, and Fu Wah is based in Beijing.

Earlier stories:
9 March 2017: McConnells follow up Harker deal with Hawkins sale to Downer
3 July 2016: Hawkins & China Construction in joint venture to build Park Hyatt on Viaduct Basin
9 September 2015: Waterfront Park Hyatt gets consent
21 November 2014: Chinese hotel on Viaduct waterfront to be a Park Hyatt
16 April 2014: Update: Wynyard hotel construction cost closer to $700,000, leasehold factors undisclosed

Attribution: Agency release.

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Airport company & Tainui to build Pullman at terminal

Auckland International Airport Ltd & Tainui Group Holdings Ltd said on Friday they’d agreed to develop a 5-star hotel next to the airport’s international terminal & the existing 4-star Novotel hotel. AccorHotels will operate the new 250-room hotel as the Pullman Auckland Airport.

Auckland Airport property general manager Mark Thomson said the timing was influenced by unprecedented demand for hotel accommodation in Auckland.

The hotel will be developed in a 50:50 partnership between Auckland Airport & Tainui. As part of this agreement, Auckland Airport has increased its ownership stake in the Novotel hotel to 50%. The 4-star-plus 263-room Novotel was completed in 2011.

The new hotel building will carry the name Te Arikinui, the chiefly title the late Maori Queen Te Atairangikaahu chose when she ascended to the wherowhero (throne).

Chris Joblin, Chief Executive of Tainui Group Holdings, says that this agreement reflects the strength of the relationship that has been established between Tainui Group Holdings and Auckland Airport.

Construction is expected to start by the end of this year, and the hotel is scheduled to open by late 2019. By then, the airport’s international terminal will have been expanded and work should be underway on the domestic section of the combined domestic & international terminal.

Image above: Artist’s impression of the new Pullman hotel next to the existing Novotel.

Earlier story:
24 July 2009: Novotel to stand in airport carpark

Attribution: Company release.

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Russell to convert 396 Queen St to hotel

The Russell Property Group Ltd (Brett Russell) & associated investors have bought the Amex-blue office tower on the corner of Queen St & Mayoral Drive to convert it into a 250-room, internationally branded hotel.

The 19-level tower at 396 Queen St was completed in the 1987 property downturn and has never been fully let. The one part of the building that did continue operating was the restored Queen’s Head Tavern.

Mr Russell said: “The resource consent has been issued for the change of use to a hotel after a highly positive process with Auckland Council. Works are planned to start in December, with completion ready for the 2017-18 summer season.” He said his company was in advanced negotiations with one of the largest global hotel companies to manage the investment.

Russell company Dominion Constructors Ltd, which repaved Queen St’s footpaths a decade ago, will carry out the Queen St conversion. The company has completed a growing number of hotel projects, ranging from refurbishment & conversion through to new-builds – Breakfree on Cashel in Christchurch, Adina Hotel Auckland, Quest Highbrook, Sudima Auckland Airport & Sofitel Wellington.

The Russell Property Group managed the conversion of the former Quba Apartments, near Vector Arena, to the 4-star plus Adina Apartment Hotel. The hotel opened a year ago, providing a combination of studio & one-bedroom units, and 2-bedroom executive apartments have been added recently.

Colliers national hotels director Dean Humphries, who negotiated the Queen St sale, said Auckland was desperate for more hotels as the tourism boom took the city to capacity: “The massive increase in international tourists over the last 3 years – a 26% increase, or nearly 700,000 additional visitors/year – has led to a critical shortage of hotel rooms in Auckland and other key tourism destinations around New Zealand.”

A report for NZ Trade & Enterprise in May said the shortfall in Auckland, Rotorua, Wellington, Christchurch & Queenstown would reach 4500 rooms by 2025.

“With market occupancy now at 86% and average room rates growing at over 10%/year, Auckland now ranks amongst the best performing ‘gateway cities’ in the world,” Mr Humphries said.

Trade & Enterprise investment general manager Quentin Quin said hotels of 4 stars & above were the type of project the Government had been targeting through the hotel investment attraction initiative.

Link:
NZ Trade & Enterprises, 24 May 2016: Market research shows a compelling case for investment in new hotels

Attribution: Agency release.

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Hainan conglomerate adds Hilton stake to its international expansion

The HNA Group, based on Hainan Island off the south coast of China, expanded its hospitality arm internationally this week with an agreement to buy 25% of Hilton Worldwide Holdings Inc from asset manager the Blackstone Group LP for $US6.5 billion.

It will also hold 25% of Park Hotels & Resorts and Hilton Grand Vacations, due to be spun off from Hilton Worldwide at the end of this year.

HNA has already expanded this year through its acquisition of another US operator, Carlson Hotels Inc, still to be settled.

Blackstone’s interest in Hilton will fall to 21% when this new transaction closes in the first quarter of 2017.

HNA gets 2 directors – one representing HNA & one independent – on a board increased from 8 to 10. It will have a restriction on selling any of its interest for 2 years and limits on increasing its interest without Hilton’s consent. Blackstone will retain 2 board seats, including the chair.

HNA’s purchase price, $US26.25/share, represented a 14.6% premium over Hilton’s closing price the previous Friday.

Hilton Hotels Corp bought back Hilton International in 2006 after a 40-year separation, then merged with a Blackstone affiliate in 2007, valuing it at $US26.7 billion including debt. The merged entity became Hilton Worldwide in 2009 and, in 2013, it was relisted on the New York Stock Exchange.

Hilton has a portfolio of 775,000 rooms in 4700 managed, franchised, owned & leased hotels & timeshare properties in 104 countries & territories, run under 13 brands.

The Blackstone Group LP has $US361 billion of assets under management.

HNA Group was founded on the business of Hainan Airlines Ltd in 1993 and has grown into an international conglomerate with $US90 billion of assets. Its interests include 1250 planes flying under numerous banners, HNA Capital (leasing, banking, insurance), HNA Tourism (Caissa Touristic, China’s top outbound tour operator, which runs over 240 travel agencies), HNA Hospitality Group (a range of nearly 2000 hotels in all tiers), HNA Airport Group (13 airports under management & co-operation projects, plus airport economic & industrial parks, all in China), HNA Real Estate (developing the 10,000 mu (667ha) Hainan Island cbd and the 49,000 mu (3267ha) South Sea Pearl River manmade island), HNA Retail (over 1.2 million m² of outlets) & HNA Logistics (about 60 ships, a shipbuilder, cold-chain logistics).

In April, HNA agreed to buy another US-based hotelier with international interests, Carlson Hotels Inc, including its 51.3% of Stockholm-listed Rezidor Hotel Group AB (publ), which is Carlson’s master licensee based in Brussels and has 474 hotels in Europe, the Middle East & Africa. HNA also owns 30% of NH Hotel Group SA, based in Madrid, which has 400 hotels.

The Carlson transaction was scheduled to settle in the second half of this year. When that happens, under Swedish takeover rules HNA will have 4 weeks to either launch a full public tender offer for the whole of Rezidor or sell down below 30%.

Links:
Hilton Worldwide
Blackstone
HNA Group
Rezidor

Attribution: Company releases.

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Swiss-Belsuites about to open at Victoria Park Market

The Swiss-Belsuites Victoria Park hotel developed by Mansons TCLM Ltd, managed & leased on a long-term basis by Hong Kong-based & New Zealand-owned Swiss-Belhotel International Group, opens on 21 October.

The 40 suites are a mix of 1-3 bedrooms and range in size from 37-123m², developed above the Victoria Park Market carpark.

Swiss-Belhotel chair & president Gavin Faull has based his business in Hong Kong for 25 years after his 7 years as chief executive of Kingsgate International Ltd, which operated in Australia & New Zealand, and he now runs over 135 hotels in 17 countries.

The Auckland hotel is Swiss-Belhotel’s second in New Zealand. The company took over management of the Coronet Peak at Arthur’s Point outside Queenstown 3 years ago from the owner of the property, Queenstown Resort Hotels Ltd (Tim Manning, of Norwich Properties Ltd and formerly of Taradale Property Group Ltd), and bought it at the end of last year.

The hotel company has also entered the Australian market, starting with the York in Sydney. It also took over the management contract at the Peak apartments hotel in Brisbane on Saturday.

Earlier stories:
8 July 2016: Swiss-Belhotel to open first Australian hotel
6 November 2015: Faull’s Belhotel buys Coronet hotel from Manning

Attribution: Company releases.

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Swiss-Belhotel to open first Australian hotel

Gavin Faull.

Gavin Faull.

Swiss-Belhotel International Group, the Hong Kong-based hotel management company run by New Zealander Gavin Faull, will enter its first Australian management contract on 1 October when it takes over the Peak apartments hotel in Brisbane.

The property at 218 Vulture St, near South Bank & the Gabba cricket ground in South Brisbane, has 134 rooms, including 14 45m² studios & 12 executive studios of 54m².

Mr Faull has based his business in Hong Kong for 25 years after his 7 years as chief executive of Kingsgate International Ltd, which operated in Australia & New Zealand, and now runs over 135 hotels in 17 countries.

The Brisbane hotel is on his list of 53 “upcoming destinations” he wants Swiss-Belhotel to expand into, mostly through China & South-east Asia.

The group began unveiling a pipeline of Middle East openings this year after presenting at the Arabian travel market in Dubai in April.

Link: Swiss-Belhotel

Earlier story:
6 November 2015: Faull’s Belhotel buys Coronet hotel from Manning

Attribution: Company release.

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Hawkins & China Construction in joint venture to build Park Hyatt on Viaduct Basin

Hawkins Group Ltd & China Construction NZ Ltd signed the contract with Fu Wah International Group this week to deliver the Park Hyatt Auckland hotel in the Wynyard Quarter through a joint venture.

Hawkins is local, China Construction (China State Construction Engineering Corp Ltd) is headquartered in Shanghai and listed on the stock exchange there, and Fu Wah is based in Beijing.

The 7-storey hotel on the former Team NZ site fronting the Viaduct Basin will have a total floor area of 29,000m², 195 rooms, food & beverage outlets, event spaces, a spa and a fitness centre that includes a 25m pool.

Work is due to start this month for completion in late 2018.

Precinct Properties’ Wynyard Quarter map showing the new hotel site on the right and its own development in the centre

Precinct Properties’ Wynyard Quarter map showing the new hotel site on the right and its own development in the centre.

Fu Wah NZ Ltd general manager Richard Aitken, who moved from Auckland Council’s Panuku Development Auckland (the landowner) to head the project, said: “Hawkins’ experience & understanding of the Auckland waterfront environment, including the challenging ground & climate conditions, will help to successfully guide this project. Together with China Construction, they have the resources, experience & skills to deliver an outstanding outcome for Auckland.”

Hawkins built the ANZ Viaduct Events Centre and is building the ASB Theatre, working on streetscaping throughout the Wynyard Quarter and on the Precinct Properties NZ Ltd Innovation Precinct project in Madden St.

China Construction is one of the world’s biggest construction businesses, with $US100 billion annual construction turnover. It ranks 37th in the current Fortune Global 500 and has built similar luxury hotels around the world.

The project will involve advanced building information modelling and input from Auckland-based Bossley Architects, Singapore-based AR+D Studio and interior designers Conran + Partners.

Links: China Construction
Fu Wah Group
Hawkins Group
Precinct Properties Wynyard Quarter Innovation Precinct

Attribution: Hawkins release.

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Second new hotel announced for Remarkables Park

Remarkables Park Ltd said yesterday work would start next March on the second new hotel in 5 years at its masterplanned Queenstown subdivision. Its opening is scheduled for early to mid-2018.

The hotel, on Market St, will be south of the new Ramada Hotel & Suites Remarkables Park, which opens next month.

Currently in the early stages of design, the new Wyndham hotel will comprise 81 serviced hotel apartments with 98 beds and 9 ground-floor retail units. The Wyndham Hotel Group, the world’s largest hotel company, hasn’t revealed the operating brand yet.

Both the new hotel and the Ramada are being developed by Safari Group (NZ) Ltd (Robert Neil & Stephen Taylor), which has built 11 hotels & apartment complexes and numerous commercial & residential properties.

Safari Group will also develop 55 apartments – a mix of one bedroom, 2-bedroom and 2-bedroom + study units – in a separate building beside the new hotel. Total project value for the development, including the hotel, residential & retail units, is estimated at $58 million.

Remarkables Park Ltd chief executive Alastair Porter said the company was also talking to other hotel brands about bringing more mid-range & high-end properties to the resort.

Remarkables Park Ltd is a property development & investment subsidiary of Porter Group Ltd (brothers Alastair, John & Neville Porter). Remarkables Park is a 150ha masterplanned resort & town centre development overlooking the Kawarau & Shotover Rivers, with views of the Remarkables mountains.

Earlier stories:
15 April 2016: Ramada to open at Remarkables Park in June
23 July 2014: Safari to build Ramada hotel at Remarkables Park

Attribution: Company release.

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Research indicates 26-hotel shortfall over next 10 years

Research by Colliers International NZ Ltd & Fresh Information Ltd (Shane Vuletich) indicates 26 more hotels will be needed around the country over the next 10 years to meet rising tourist demand, on top of the hotels already planned.

The research was commissioned by NZ Trade & Enterprise, Tourism NZ and the Ministry of Business, Innovation & Employment and is part of Project Palace, a programme to accelerate new private sector investment in hotel infrastructure led by NZ Trade & Enterprise and the Government’s Investment Attraction Taskforce.

Economic Development Minister Steven Joyce said yesterday: “This is the first time we’ve had quantified data on the effect that the tourism growth projections will have on hotel occupancy. This research will be a great help to private investors considering when & where to invest in New Zealand’s fast-growing tourism accommodation industry.”

The research focused on Auckland, Rotorua, Wellington, Christchurch & Queenstown and showed that, if demand & supply estimates are borne out, the shortfall in new hotel rooms was expected to be up to 4526 rooms in those centres by 2025 – the equivalent of 26 hotels the size of the Sofitel Viaduct in Auckland.

Mr Joyce said the Project Palace work would help match-make investors with opportunities and reduce the time taken to fill information gaps that can slow investment.

He said the Government organisations were working with local government & the private sector to identify available locations for additional hotels in each of the 5 centres studied, and to pave the way for attracting new investment in hotel development.

NZ Trade & Enterprise will use the research as the basis for a prospectus that outlines the business case for investment in New Zealand hotels to domestic & international investors.

Attracting high value foreign investment into New Zealand is part of the Government’s investment attraction strategy, and contributes to the Government’s business growth agenda target of attracting an extra $160-200 billion of capital by 2025.

Mr Vuletich left Covec Ltd 3 years ago to form his own research house, Fresh Information.

Link:
Regional hotel market analysis & forecasting – May 2016(PDF, 1MB)

Attribution: Ministerial release, research report.

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