Strategic site: A hotel consortium's bought this aggregated Thompson St site for just over $4m

A New Zealand hotel consortium’s bought a 2125 square metre development site in central Queenstown’s Thompson Street.

It’s spending just over $4 million for three neighbouring residential properties that were aggregated three years ago.

The vendors are Christchurch-based Chinese interests.

Local broker Adrian Chisholm says the consortium, which has hotels elsewhere in NZ, had been looking for the right resort site.

“I put it up on the website just prior to Christmas, and all hell broke loose, and we ended up with a multi-offer. There’s still so much interest in hotel development sites in Queenstown.

“There are a lot of hotels under construction or proposed, but there seems to be still a huge appetite for various hoteliers around the world wanting to put a badge in Queenstown.”

Aside from stunning lake and mountain views that can’t be built out, as there’s a reserve below, the Thompson St site has two other advantages, Chisholm says.

Under the proposed district plan, any development in this area will have more allowable building coverage and height, potentially enabling a couple of extra levels.

Secondly, the site’s along the road from the proposed town centre bypass, which would cut a swathe from Thompson St down to a relocated One Mile roundabout.

Chisholm: “People arriving by bus, for example, will be able to come through the bypass and come up the cul de sac of Thompson St.”

He says the new Auckland-based owners, who settle next month, are taking a long-term view, and will rent out the three houses in the meantime.

“They’re going to land-bank it until the proposed district plan is confirmed, and obviously the bypass, if it happens, will be a bonus in terms of the logistics of getting guests in and out of the hotel.”