The Travelodge Hotel Wellington, a popular four-star hotel located in the epicentre of Wellington’s CBD, is now on the market.
The hotel was formerly part of the Plimmer Centre and was constructed in 1986. In 2009, the hotel underwent an $11 million retrofit and was then rebranded under the popular Travelodge brand.
In addition to the 132 well-appointed modern guest rooms, the hotel contains a 24-hour reception/lobby, a la carte restaurant, five conference rooms, 20 leased car parks, a gymnasium, and laundry.
National director of hotels at Colliers Dean Humphries says the current owners purchased the hotel in 2016 and have since witnessed significant revenue and profitability growth before the COVID-19 pandemic struck in March 2020.
"In the years leading up to the pandemic, the hotel had an average occupancy of more than 85 per cent, one of the highest in the region," Dean says.
"During COVID, the hotel still managed occupancy levels above 55 per cent, which was a credit to the hotel management team and the strategic prime location of the asset. As we move forward in 2022, it is likely the hotel will quickly recover to pre-COVID trading levels."
Dean says hotels remain a good investment and are rarely sold in key tier-one locations throughout New Zealand and less than three per year across the country have sold during the past 20 years.
"Wellington in particular is very popular with hotel investors due to its historically robust and stable trading performance, particularly at times when the other markets are in a correction phase.
"In past economic downturns, Wellington hotels have always performed well above the rest of the market, due to the city being the seat of Government with a lower reliance on international guests, historically only 20 per cent of guests staying in hotels in Wellington were from abroad.
"Furthermore, with just one hotel under construction in the CBD and the new 1600 delegate Tākina Wellington Convention and Exhibition Centre opening in 2023, we are likely to see Wellington undergo a quick recovery with strong performance metrics moving forward."
As the Travelodge is available with or without the current management contract, the hotel also has a wide range of value-add opportunities, including upgrading and repositioning the hotel, conversion to student or budget-focussed accommodation, conversion to extended stay self-contained apartments, or residential, whether that be temporary or transitional housing, affordable residential housing, or a co-living concept.
"It is widely known that Wellington has an acute shortage of affordable accommodation, including student accommodation, so this building would be an ideal opportunity to pivot or repurpose to this use," Dean says.
The property is being sold via an international expression of interest campaign closing at 4pm on Thursday, June 9, unless sold prior.
