Published on : Friday, October 12, 2018
The Waldorf Stadium Apartment Hotel in Auckland, New Zealand’s Central Business District, has been sold to the Australia-based Mulpha Group for more than $54 million.
The 178-unit strata-title development was sold subject to a new 11-year performance lease underpinned by Japanese serviced apartment conglomerate Daiwa House Group, which has a market capitalization of US$19.15 billion as of December 2017.
Colliers International and CBRE announced the sale following an international campaign that saw multiple investors looking to take advantage of New Zealand’s current tourism boom and strong hotel-market fundamentals.
Mulpha Group acquired Australia and New Zealand’s Waldorf serviced apartment business in 2017 with further plans to expand in the region. CEO Greg Shaw said the strong underlying fundamentals driving the New Zealand tourism and hotel sectors were some of the main reasons the company was investing in the sector.
Dean Humphries, national director of hotels at Colliers International, said the transaction is the first major hotel sale in the Auckland CBD since the Hilton Auckland sold in 2012.
He then went on to add that it is also the largest hotel transaction in Auckland in 12 years since the Carlton on Mayoral Drive sold for NZ$113 million in late 2006.
Wayne Bunz, national director of CBRE Hotels, said the hotel is a great addition for Mulpha to add to its significant hospitality asset portfolio in Australia, which includes Hayman Island, Bimbadgen Estate, and InterContinental Hotels in Sydney and Sanctuary Cove.
Bunz said that hotels rarely trade in Auckland and are predominantly held by long-term investors.