What's Happening?
Gaw Capital Partners, a private equity fund based in Hong Kong, has acquired a property in Queenstown, New Zealand, for $31 million. The site, previously the Base Backpackers hostel, is located at 47-49 Shotover Street, a central area with high pedestrian
traffic and close to major tourist attractions like Queenstown Mall and the Skyline Gondola. The acquisition was facilitated through a competitive Expressions of Interest campaign managed by CBRE Hotels’ Peter Hamilton and Wayne Bunz, representing Prakash Pandey, one of New Zealand’s largest private hotel owners. The property is currently vacant but has plans for a 69-room boutique hotel, which could enhance Queenstown's competitive tourism market. This purchase is part of Gaw Capital Partners' ongoing investment in New Zealand's hospitality sector, following their renovation of the Haka House hostel in Wanaka.
Why It's Important?
The acquisition by Gaw Capital Partners underscores the continued interest of international investors in New Zealand's hospitality sector, particularly in established hotel assets. This interest is partly driven by New Zealand's favorable investment climate, which lacks stamp duty and capital gains tax, making it attractive for offshore investments. The planned development of a 69-room hotel at the site could significantly impact Queenstown's tourism industry by increasing accommodation capacity in a market known for its competitive nature. Additionally, the transaction highlights the challenges and opportunities in the hospitality sector, with rising construction costs and limited investment opportunities in central business districts influencing investor decisions.
What's Next?
While no timeline has been announced for the construction or opening of the new hotel, the acquisition sets the stage for potential development in the near future. Stakeholders in Queenstown's tourism and hospitality sectors will likely monitor the progress closely, as the new hotel could influence local market dynamics. The development could also prompt further investments in the region, as other investors may seek to capitalize on the growing demand for tourist accommodations. Additionally, local businesses and service providers might anticipate increased activity and opportunities once the hotel becomes operational.
