Timing’s right for hotel site

Plum site: This hotel- and residential-zoned land behind the Hilton Hotel is for sale as one lot or in three different parcels

A large land parcel behind the Hilton Hotel is one of the most prime and appropriately-zoned development sites to hit the Queenstown market in some time.

The 9448 square metre site – originally consented to be part of the Hilton complex before the development company fell over – is owned by local company Winton Partners NZ.

The company, associated with developer Chris Meehan, is also developing the adjacent high-end residential development, Lake’s Edge.

Labelled ‘The Terraces’, the site above the Hilton is being marketed as one parcel or as three freehold sites, each on different platforms.

These comprise a 5270 square metre hotel site, a 2440sq m apartment site and an 1100sq m townhouse site.

The development potential of those sites, according to a bulk and location study by Studio Pacific Architecture, of Auckland, is for a 274-room, seven-level hotel, 21 apartments and six townhouses.

Jimmy Allen, sales consultant for Queenstown’s BayleysLocations – which is marketing the site along with Auckland’s Whillans Realty Group – says the whole site “was probably going to become too big an animal for a lot of hotel buyers”.

“The other reason we’ve split it into three is because the apartments and townhouses are affordable for even local developers. It’s just really giving people some options.”

The land’s obviously got a spectacular location and views.

That’s paired with appropriate zoning for high-density residential and hotel development.

The other plus, Allen says, is that earth and excavation works have been completed for each platform.

“Unless you find a dead flat bit of land, there’s a huge engineering cost and groundworks cost for any development.”

Allen’s got no doubt the timing’s right for hotel development.

“It’s been widely reported that there’s a massive shortage of hotels in Queenstown.

“And thanks to Donald Trump there are going to be a lot more Americans coming over here.”

The site’s for sale by tender closing November 24.