What's Happening?
Gaw Capital Partners, a Hong Kong-based private equity fund, has acquired the former Base Backpackers hostel in Queenstown, New Zealand, for $31 million. The property, located at 47-49 Shotover Street, is a 977-square-metre freehold site in central Queenstown, near
major tourist attractions. The site is currently vacant but has plans for a 69-room boutique hotel. This acquisition is part of Gaw Capital's ongoing investment in New Zealand's hospitality sector, following previous projects like the renovation of the Haka House hostel in Wanaka. The transaction was managed by CBRE Hotels and reflects a strong investor interest in established hotel assets, especially given the rising construction costs and limited investment opportunities in Queenstown's central business district.
Why It's Important?
This acquisition highlights the continued interest of international investors in New Zealand's hotel sector, driven by the country's favorable investment climate, which includes the absence of stamp duty and capital gains tax. The development of a new boutique hotel in Queenstown could enhance the region's tourism infrastructure, potentially boosting local economic activity. The investment by Gaw Capital Partners also underscores the strategic importance of Queenstown as a tourist destination, with its high pedestrian traffic and proximity to attractions. This move could set a precedent for further international investments in New Zealand's hospitality industry, contributing to its growth and competitiveness.
