Business South

Page 1

May 2016

www.waterfordpress.co.nz

Superhome Movement

16-page lift-out

Hotel sector starting to heat up Chris Hutching The hotel sector is on the cusp of a development boom as tourists flock to New Zealand. Several plans for hotels have been announced, and investment activity has quickened as operators buy existing hotels. Occupancy rates are high and room rates are rising. Stephen Hamilton of consultants Horwath HTL says he has identified about 2000 new hotel rooms due to be built over the next two or three years. Auckland and Queenstown are the hot spots, while hotel construction in Christchurch is rebuilding capacity lost in the earthquakes. Renewed hotel building may be driven by a New Zealand Trade and Enterprise initiative seeking funds from overseas developers.

It has strong backing from some businessmen and qualified support from others. Christchurch already has new airport hotels – the revamped Sudima, JUCY Snooze Backpacker, and the planned Novotel. Originally opened in 1966 as the White Heron Hotel, it was acquired by the Jhunjhnuwala family (worth more than $100 million according to the NBR’s Rich List) in 1999, re-branded as Sudima Christchurch Airport The damaged former Millennium in Cathedral Square has just been acquired for $8.6 million for redevelopment by Southland businessman Geoff Thomas who owns Distinction Hotels, and Auckland-based Sarin Group has acquired the former printing site of The Press in Cathedral Square for a hotel. And Christchurch hoteliers, Michael, Ken and

Thomas Patterson, have purchased the 19-room Queenstown Park Boutique Hotel. The vendors include Christchurch investors James Wall, John Mulholland, and Peter Smith who have been involved in accommodation investments over many years including Awaroa Lodge. The July 2014 rateable value is $3.9m but the brothers are understood to have paid more than this. The Patterson brothers are part owners of the long-established Commodore Hotel in Christchurch which opened in 1971. The family has been seeking a second hotel form some years as a match in quality for the Commodore so they can refer guests between the two. Diversification was another reason, after the experience of what the 2011 earthquakes did to the Christchurch hotel sector. Queenstown is due to become an even more

frenzied destination with other southern centres like Tekapo also experiencing a renewed real estate and accommodation boom. Prime Minister John Key recently announced the government has won a contract to bring 10,000 Chinese tourists which includes host winners of Amway. The visitors will come in waves of 500 which will challenge Queenstown accommodation services with only one new Ramada Hotel to be completed in June. Alastair Porter, developer of Remarkables Park is keen on the government initiatives. He says it is appropriate if they can be a catalyst to bring in international funds. “Hotels in Queenstown are full and it’s a struggle finding accommodation throughout the year now.” Mr Porter says there are many hotel brands to yet make a presence in New Zealand.

Shake up for LINZ system Chris Hutching Land Information New Zealand (LINZ) is to replace its Landonline services with a new system called Advanced Survey and Title Service (ASaTS). It says the aim is to ensure cost and time for title transactions remains low and enhance services. The improvements will include an online search so property buyers can get title information without specialist help. It will be more interactive - surveyors and conveyancers will be able to plug their own software into the system to reduce rework, use it on tablets and mobiles, and will represent property boundaries in 3D. It will also enable LINZ to link property information held across central and local government – such as ratings valuations and titles. The current Landonline system is more than 15 years old and there have been significant advances in technology, knowledge and expertise. For example, it can’t be used on mobile devices. LINZ will also use the opportunity to improve survey and title services so that it provides a better picture of all land, whether in Crown, Maori or private ownership, plus build a function providing links to property information held by LINZ and other government agencies. The current system is paid for by customers like conveyancers and surveyors who use Landonline and this would be the same for ASaTS. It will mean a cost increase for customers in 2021 when it should be in place. LINZ estimates it will add about $20 to $50 to the cost of a typical title transaction, currently about $80.

INSIDE

Another young kiwi off to see the world... Ngaio, a young kiwi born at Queenstown’s Kiwi Birdlife Park last summer, checks out her surroundings. Once they are big enough to fend off predators, the young kiwis bred at the park are released into safe predator-controlled areas around New Zealand.

New Zealand sake going down well - PAGE 2

Extolling the benefits of herbs - PAGE 3

This year the park - a popular tourist attraction - is celebrating its 30th anniversary and for the first time has three breeding pairs of kiwi in residence. Should they all produce eggs in September it will be a real boost for the park’s kiwi recovery programme. See story page 5

Office space glut in Christchurch - PAGE 3

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