Nesuto Stadium Hotel and Apartments auckland listed for sale by mulpha group
Nesuto Hotel in Auckland was built in 2008 and renovated in 2020. Image: Supplied.
  • The hotel was built in 2008.
  • An expansion and renovation programme took place in 2020.
  • The listing comes as several other hotels were sold or listed.

Auckland’s Nesuto Stadium Hotel and Apartments has been listed by Mulpha Group, as the company progresses a capital recycling strategy for its hospitality investment portfolio.

The listing comes as other major hotel transactions and listings took place across the ditch, including Iris Capital‘s listing of QT Hotel and East End Retail precinct in Newcastle, the $170 million acquisition of Novotel and ibis Melbourne Central, a $154 million acquisition of Sofitel Adelaide, the listing of Ritz-Carlton Perth and Ritz-Carlton Melbourne, and the listing of Ovolo’s The Woolstore 1888 in Sydney.

The 4-star Auckland hotel was constructed in 2008 and is situated on a 2,450 square metre (sqm) leasehold land parcel. The asset is subject to a long-term ground lease to the Ngāti Whātua Ōrākei Maori Trust Board, with a secure tenure of approximately 123 years remaining.

The building itself covers circa 10,630 sqm over ten levels and comprises 144 hotel rooms, 100 self-contained apartments, the new Nook Restaurant & Bar, and access to 100 nearby car parks. It also has a Grade A seismic rating with an assessed building strength of 100% New Building Standard (NBS).

nesuto hotel auckland listed for sale
The Nesuto Hotel in Auckland has been listed for sale. Image: Supplied.

The hotel is operated under the Netsuto brand under a management lease, with a landlord-favourable turnover rent structure. The tenant is a wholly owned subsidiary of the Japanese conglomerate and serviced apartment operator Daiwa House Group.

“Auckland is one of the most sought after and tightly held hotel and hospitality markets in the Pacific region, with the sale presenting an opportunity to acquire a significant foothold in a key gateway city,” said CBRE‘s Michael Simpson.

“The scale of this opportunity combined with Auckland’s hotel and tourism market recovery is expected to underpin high levels of buyer interest from both domestic and international capital sources.”

Nesuto Stadium Hotel and Apartments is ideally located in the heart of Auckland, close to many of the city’s most popular attractions and businesses. The hotel is just a short walk from Spark Arena, Princess Wharf, Viaduct Harbour, the Britomart Precinct, and Queen Street, making it a convenient choice for both leisure and business travellers.

CBRE’s Wayne Bunz said the property underwent a NZ$12 million expansion and renovation programme in 2020, which saw 68 of the two-bedroom apartments converted into 144 hotel rooms, raising the total key count to 244, in addition to the development of the Nook Restaurant & Bar.

“Along with the limited capital expenditure requirements, the incoming owner will benefit from the performance-based management lease, under which the tenant is liable for all operational costs and the owner receives a fixed percentage of 52.86% of total revenue each year, with additional income potential upon meeting a turnover threshold,” added Bunz.

CBRE Hotels’ Michael Simpson and Wayne Bunz together with CBRE New Zealand’s Warren Hutt have been exclusively appointed to manage the international Expressions of Interest campaign for the leasehold interest in the property.

You May Also Like

Australia’s return to office continues to shine as the US stagnates at 50 per cent of pre-Covid levels

The Australian office market records improved office occupancy while the United States lags behind on the return to office.

Work from home is here to stay, and Australia’s secondary offices are at a turning point

Secondary office assets face challenges with poor uptake and declining values, especially in B and C-grade properties.

Why Australia needs more industrial assets to boost productivity and growth

A new report reveals that Australia’s industrial assets handle over $1.2 trillion worth of products annually.

Sydney’s retail sector continues to improve, with one area boasting zero vacancy

Vacancy rates for Sydney’s prime retail core have dropped to 8.3%, with the one area recording vacancy rates of zero.