Interest in Landmark Boutique Hotel

One of Christchurch’s best-known boutique hotels, Chateau Blanc Suites, has just sold off-market to a Christchurch investor for $11 million, after attracting interest from both sides of the Tasman.

The 36-room boutique hotel and serviced apartments, on the corner of Kilmore, Montreal and Peterborough Streets, has now returned to local hands, after being sold by its Australian owners. The Living 5 property includes the hotel complex and additional adjacent bare land, totalling around 6,695m2 on a total of six separate property titles.

Harcourts Holmwood commercial marketing agent Simon Rowland-Jones says the Chateau Blanc Suites garnered interest from both local and international hotel chains, private investors and local developers.

“Chateau Blanc Suites combines a high profile city-fringe location and a strongly performing boutique accommodation business, popular with locals and corporate travellers,” says Simon Rowland-Jones.

“Such a solid opportunity, and the significant potential of the site, was reflected in the quality of interest from both local and international investors.”

Mr Rowland-Jones says the new owner of the Chateau Blanc Suites, which was sold with resource consent in place for further hotel & residential apartments, plans to expand the existing business – making use of the remaining land to further develop the hotel complex.

“The vendor was obviously pleased with the sale,” says Simon Rowland-Jones, “which we believe reflects a renewed confidence in the local market, and the increasing yields to be found in good quality, high value commercial properties.”

Harcourts Holmwood commercial manager Rosa Carter-Holt says the interest seen in this type of property – especially from some of Australia’s major hotel chains – highlights an increasing trend in the local market.

“Particularly since the beginning of this year, our commercial team at Harcourts Holmwood has seen a great deal of interest from leading Australian accommodation chains looking to establish a foot-hold in the New Zealand market.”
“These groups are predicting significant growth in the New Zealand tourism market over the next five years, especially in the demand for quality mid-level accommodation products for the expanding ‘flash-packer’ sector.”

“At the same time, we are also being approached by high net-worth syndicates from NZ, Australia and North America, looking to invest in entire property portfolios.”

Ms Carter-Holt says although there is a great deal of demand for quality commercial property in Christchurch, and the wider South Island, tailoring the selling process to suit local vendors is extremely important.

“That’s where we believe a boutique commercial agency like Harcourts Holmwood – with our extensive personal connections – has a real edge,” says Rosa Carter Holt.

“We’re able to provide a tailored package to suit the vendor – whether it’s leveraging the strength of Harcourts auction team, or conducting a discrete, off-market sale that won’t disrupt daily business.”