Sizeable hotel and motel portfolio now on the market in receivership sale
A large portion of New Zealand’s second biggest privately-owned motel and hotel chain has been put up for sale as part of a receivership process.
The SilverOaks Group featured six large accommodation businesses in Auckland, Rotorua and Wellington. The portfolio was previously placed on the market for sale by its then owners earlier this year. At that stage, the offering included:
• The SilverOaks
Geyserland in Rotorua – a 68 room property overlooking the
touristy Whakarewarewa Thermal Valley.
• The SilverOaks Resort Heritage ion Rotorua – a 41 room apartment style complex supported by a range of leisure activities and amenities.
• The Gwendoline Court Motel in Rotorua – an 18 unit business close to the city’s Maori arts and crafts attraction.
• The Oakwood Manor Motor Inn in Auckland – a 53 unit conference and function venue.
• The SilverOaks Inn Silver Point in Auckland – a 35 room conference and meeting location.
• The SilverOaks Hotel in Wellington – a 64-room close to the city’s botanical gardens.
The parent company running the six locations subsequently went into receivership. A sale has proceeded, for an undisclosed price, for The Oakwood Manor Motor Inn. The property was purchased with a view to continuing accommodation services and in the longer-term potentially adding retail premises as well as a possible residential development.
The SilverOaks Hotel in Wellington has been sold subject to a conditional contract, also for an undisclosed sum.
The remaining four hotels in Rotorua and Auckland are now are being sold through a receivership process by Bayleys - either as one combined portfolio, or as individual locations. Offers for the properties close on November 19.
The marketing campaign is being headed up by Paul Dixon and Mike Peterson of Bayleys Auckland, with local representation in Rotorua from Mark Slade.
Paul Dixon said the four remaining hotels in the former SilverOaks group were being traded in receivership by accountants Korda Mentha.
“This has maintained the financial integrity of the properties, and ensured that all forward bookings or reservations were fulfilled,” Mr Dixon said.
Mr Dixon said most of the hotels were in a fairly ‘tired’ stage of their lives, and varying degrees of investment would be needed to restore them to former glories and modern interior décor – both in the bedrooms, and the communal areas. Most of the hotels were built during the 1980s.
“Combined with the fact that the properties are now in receivership, albeit still generating some revenues, the receiver’s price expectations reflect a realistic appraisal of their current market position,” Mr Dixon said.
Leisure amenities within the SilverOaks hotels and motels feature swimming pools, spa and sauna rooms, tennis courts, BBQ areas, children’s playgrounds and mini-putt golf courses. Corporate services include conference and meeting break-out rooms. All of the properties have licensed food and beverage operations delivering restaurant and bar options, function catering, or in-room dining.
“One of the Rotorua properties, and the remaining Auckland site have potential for conversion into private rental accommodation, while the remaining two Rotorua locations could continue in the hospitality arena,” Mr Dixon said.