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, formerly the Base Backpackers hostel, is located at 47-49 Shotover Street in central Queenstown. The acquisition
was managed through an entity associated with Gaw Capital Partners. The 977-square-metre freehold property is currently vacant but includes plans for a 69-room boutique hotel. The sale was conducted through a competitive Expressions of Interest campaign led by CBRE Hotels’ Peter Hamilton and Wayne Bunz, acting on behalf of Prakash Pandey, one of New Zealand’s largest private hotel owners. This purchase adds to Gaw Capital Partners' portfolio in New Zealand, following their renovation of the Haka House hostel in Wanaka.
Why It's Important?
The acquisition by Gaw Capital Partners underscores the ongoing interest of international investors in New Zealand's hospitality sector. The property's central location in Queenstown, a major tourist destination, makes it a valuable asset. The transaction highlights the attractiveness of New Zealand's hotel market, particularly due to the absence of stamp duty and capital gains tax, which are significant considerations for offshore investors. The planned development of a 69-room hotel could enhance Queenstown's accommodation capacity, catering to the competitive tourism market. This move reflects broader trends of rising construction costs and limited investment opportunities in central business districts, driving investor interest in established hotel assets.
What's Next?
No specific timeline has been announced for the construction or opening of the planned hotel. The property remains vacant following the sale. The development plans for the site could potentially increase accommodation options in Queenstown, aligning with the area's tourism growth. Stakeholders in the hospitality and tourism sectors will likely monitor the progress of this project, as it could influence market dynamics and investment trends in the region.
