A major Auckland hotel will go under the hammer in May.
The 178-unit Waldorf Stadium Apartment Hotel represents the first major hotel sale in the Auckland CBD since the Hilton Auckland sold in 2012.
It comprises ten levels of studio, one, two and three bedroom self-contained apartments at 40 Beach Road.
The strata title development will be sold subject to a new 11-year performance lease to the Daiwa House Group, which owns the Australia and New Zealand Waldorf serviced apartment business.
The property is being sold through Colliers International Hotels and CBRE Hotels by an international expression of interest campaign closing at 4pm on May 16.
Dean Humphries of Colliers said the long-term management lease to Japanese giant the Daiwa House Group would give buyers confidence about the property’s financial future.
“This strong tenant covenant will provide investors with secure long-term returns moving forward,” he said.
Built in 2008, the Waldorf Stadium Apartment Hotel is close to the harbour and Spark Arena and 500m from Queen Street.
The 10,630sqm property is situated on a parcel of land which is subject to a long-term ground lease to one of Auckland’s largest inner-city land owners.
It is common for hotels in Auckland to be located on leasehold land due to their closeness to the water’s edge, with the majority of this land owned by entities like Ngati Whatua Orakei and Auckland Council.
The sales campaign comes at a time of growth in Auckland’s hotel sector, with occupancy rates at 86 per cent and ‘revenue per available room’ growth of around 13 per cent this year.