Hospitality opportunity ahead of World Cup

Media Release: Bayleys Real Estate
Date: 15 September, 2009

Hospitality opportunity ahead of expected World Cup visitor influx

A centrally-located Dunedin hotel catering to a broad mix of travellers will be auctioned by Bayleys as part of its Total Property portfolio offerings on 24 September in Christchurch.

The Victoria Hotel at 137 St Andrew Street – formerly Bentley’s Hotel – is a four-storey accommodation and hospitality complex located two blocks from the Octagon. It is ideally positioned to capitalise on the corporate conference market, business travellers, inbound tours and independent travellers looking for a central base for their stay in Dunedin.

Kate Mullins of Bayleys Christchurch and Robin Hyndman of Bayleys Dunedin, are marketing the property which will be sold as a freehold going-concern.

Ms Mullins says the current owners have invested significantly in a recent refurbishment of the hotel which has seen it gain a Qualmark ‘three star’ rating from New Zealand Tourism’s official quality rating agency.

“Guests are enjoying the updated surroundings and facilities that the hotel now offers and marketing alliances have helped build market share. All the necessary systems are now in place to grow the business even further across the different markets and this is an exciting opportunity for a knowledgeable owner/operator or an investor wishing to purchase the freehold going-concern and on-sell the leasehold to another operator,” says Ms Mullins.

The 930sq m building sits on a generous 2018sq m site held in five titles. A visionary new owner will recognise that there is potential for expansion given the land size and, with Dunedin named to host three Rugby World Cup pool matches in 2011, and Tourism Dunedin now having a full-time marketing person based in Australia to promote the city, indicators for future tourism growth are looking positive.

“New trans-Tasman flights by Pacific Blue into Dunedin and Queenstown are further opening up the South Island to overseas tourist markets. There is a now a direct Brisbane-Dunedin flight three times a week which is heartening and this will have positive spin-offs for the hospitality industry. Also, the Dunedin Visitor Strategy Steering Group has adopted a vision that by 2015, Dunedin will be New Zealand’s premiere regional tourism destination so they are embracing tourism as a major economic driver for the region,” says Ms Mullins.

Through the main entrance on St Andrew Street, is a welcoming reception area to the right with the house bar and restaurant to the left. Lift access from reception is available to the conference rooms, manager’s three-bedroom residence and guest accommodation rooms. There are 33 hotel studio-style rooms, two two-bedroom units and a hotel suite.

All accommodation areas were refurbished in 2007 including new beds in all rooms. All rooms have mini-bars, tea and coffee making facilities and Plasma flat screen TVs with Sky TV and wireless internet access available throughout the hotel.

The conference market is an evolving one for Dunedin city and the Victoria Hotel is well-placed and well-equipped for such events. There is a conference room on the first floor which can seat 120 people theatre style, while on the top floor, there is a boardroom for smaller gatherings seating up to 15.

The house bar trades as a cafe during the day and is a popular after-work meeting place by night, with an outdoor area coming into its own as the weather improves.
Linking the house bar to the main bar is a 70-seat restaurant which is serviced by a generous kitchen which was completely re-fitted in 2007.

The property has 30 on-site car parks and coach parks to the rear and side of the building.

“Over $1 million has been invested in the upgrade of the hotel so it is now ready for new owners to take the reins and drive it forward. Some thought has also been given to the future as the hotel was recently fitted with a solar panel water heating system which services the whole hotel,” says Ms Mullins.

“The current owners invested in the hotel as a long-term business venture, however, a change of plans now requires them to sell the property and their motivation to proceed with a sale is evidenced by their decision go to auction. This is an opportunity that does not present itself often and with economic indicators looking to be strengthening, investors or owner/operators are encouraged to contact us about this offering.”

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