The business lease underpinning an award-winning luxury accommodation offering has gone up for sale in one of New Zealand’s leading alpine resorts.
The St James Premium Accommodation business offers upmarket stays in a stylish complex with stunning mountain views in Hanmer Springs.
Located at the centre of the resort, at 20 Chisholm Crescent, the complex is a five-minute walk from Hanmer Springs Thermal Pools and Spa.
Operated under a lease, the business has built up a market-leading reputation and strong revenues at the top end of the local accommodation market during its first decade under the current operator.
The business lease is now being marketed for sale by negotiation through Bayleys Canterbury and Bayleys’ specialist Hotels, Tourism and Leisure sales team.
Salesperson Lindsay Petty said the profitable St James Premium Accommodation business offered hotel-style lodgings in a Qualmark five-star Gold level property close to shops, restaurants and the famed hot pools.
The complex won national recognition as ‘Best Motel’ in the Hospitality New Zealand Awards in 2018 and 2019. For the past two years, it has also held a number-one travellers’ choice ‘best of the best’ ranking on Tripadvisor.
Mr Petty said the business lease agreement had a further 24 years to run, with final expiry in 2045. Business assets included buildings with a total floor area of some 864 square metres on a 1,904-square metre leasehold site with 18 car parks.
The property’s position opposite a public reserve gave it a sense of space and uninterrupted views of the Southern Alps, Mr Petty said.
The site is zoned Commercial (8H) by Hurunui District Council, with accommodation and commercial uses among the permitted activities.
“This luxury accommodation complex was built around 10 years ago with an elegant design blending into the alpine terrain with colours and materials in keeping with the environment,” said Mr Petty.
“It contains 16 architecturally designed, stylishly furnished units, being seven deluxe studios, five executive spa studios and four one-bed spa suites.
“All units feature luxurious fixtures and furnishings, with air conditioning, under-tile heating, modern bathrooms, soundproof construction, blackout curtains and high-quality comfortable beds.”
Mr Petty said the manager’s residence at the building’s northern end was a premium three-bed, two-bathroom apartment offering open-plan living, along with a small, private and sunny patio area.
“Heated with a gas fire, the unit’s northerly aspect allows it to capture all-day sun and alpine views. The apartment is set on two levels and has an attached double garage which is used as a laundry.
“With a residence of this quality, in such a stunning setting, The St James lease offering represents not just a sound business proposition but a compelling lifestyle opportunity for a buyer.”
Mr Petty said the business generated excellent revenue from new and repeat guests, built up with sustained marketing by the existing operator. Staff available to a new operator included cleaners and reception assistance as required.
Detailed financial information and lease documents are available to potential buyers subject to signing a confidentiality agreement.
Mr Petty said the premium quality of the accommodation was complemented by the pull exerted by Hanmer Springs as a visitor resort.
“Hanmer Springs’ unique mix of attractions, with its famed natural hot pools and outdoor activities such as skiing, mountain biking, hiking, jetboating and golf, make it a genuine year-round destination.
“Combined with its proximity to Christchurch, Kaikoura and the West Coast, this has helped to underpin very strong domestic visitor numbers since the advent of COVID-19.
“The widespread shelving of overseas travel plans has led more Kiwis to discover Hanmer Springs. This has helped to drive an increase in occupancy and room rates over the past year.
“Tourism spending figures for the year to May show the district had the highest growth in New Zealand. The St James had double the Hanmer Springs growth rate for the same period.
“The St James Premium Accommodation business is ideally placed to capture rising demand from domestic visitors and, when borders open, overseas tourists as well,” said Mr Petty.