NZX-listed landlord Precinct Properties has finalised an agreement to sell the newly developed InterContinental Auckland hotel to Singapore-based Hotel Properties Limited (HPL) for $180 million.
Hotel Properties Limited specialises in owning, operating, and developing hotels, resorts, and shopping galleries across 17 countries. Its portfolio includes 41 branded hotels, such as those under the InterContinental Hotels Group.
The transaction set a new benchmark as the largest single hotel sale in New Zealand’s history and established a record price per room for hotels in the country, according to commercial real estate firm JLL, which advised on the deal.
“The hotel has added significant value to Commercial Bay, and we are committed to working closely with the new owners to continue to deliver an outstanding experience for locals and visitors across the broader Commercial Bay precinct,” Precinct Properties chief executive Scott Pritchard said.
The sale supported Precinct’s strategic objective of developing top-tier assets while reinvesting in new growth opportunities, Pritchard stated. It would also lower the company’s committed gearing by 3%.
Once the hotel transaction is finalised, which was expected by the third quarter of this year, Precinct Properties will retain ownership and management of the remaining portions of One Queen Street, including the office space located on levels 3 to 5.
HPL’s acquisition of the Auckland InterContinental Hotel marked its entry into the New Zealand market, enabling the company to expand its hotel portfolio within the country.
The group has expressed its intention to grow its luxury hospitality offerings across key Asia Pacific markets. Last year, HPL launched The Boathouse Tioman in Malaysia and The Four Seasons Hotel Osaka in Japan.