An exciting part of the recent sale of Queenstown’s Nugget Point Hotel, at Arthurs Point, is the new owner’s commitment to bring it back to a five-star property.
A subsidiary of Singapore/New Zealand company New Bay Group’s paid $20.125 million to buy the 8443 square metre property, overlooking the scenic Shotover River, which includes 40 spacious guest rooms with balconies or patios, food and beverage area, Roman-style spa, conference room, private cinema and fitness centre.
The off-market sale was handled by Bayleys’ investment sales and national hotels, tourism & leisure sales directors, Paul Dixon and Wayne Keene, respectively, and their Queenstown colleague, Allister Simpson.
The hotel’s latterly been owned by about 35 unit owners who had also been managing it for the past couple of years.
New Bay Group also owns Rydges Auckland, Wellington’s Atura hotel and Quest Tauranga.
Due to the company having 68.6% Singaporean ownership, and the property bordering reserve land, it required Overseas Investment Office (OIO) approval.
OIO gave approval on the grounds it upgrades the hotel to a five-star resort, as that will involve extra spending and create more jobs in the Queenstown area.
‘‘Consent was granted as the applicants have met the investor test criterion and that the benefit likely to occur as a result of the investment would result in benefit to NZ,’’ it states.
A specific condition is the applicant spend at least $9m on refurbishments and upgrades by June 30, 2027.
Keene says ‘‘the whole place is being redesigned’’.
‘‘The bones will still be there but it will be so different inside, and it will be all the best you can get of everything.
‘‘Everything will be just like a brand-new hotel in an existing shell.’’
Looking forward to refurb: Local Bayleys hotels, tourism & leasing agent Allister Simpson, left, and Nugget Point GM Ethan Heng
Elements of the redesign/refurb include a total refresh and upgrade of the spa and its capacity, a new lobby and reception area and upgrades to the restaurant and all the guest rooms.
Several more rooms may also be incorporated into the hotel itself.
There’s also resource consent approval for a 40-room extension on the carpark, which was formerly the tennis court.
It’s likely far fewer rooms will be added, however, to allow them to be a decent size.
The hotel’s expected to close for a few months from next April for the first-stage refurb.
Keene notes when it opened in the late ’80s, Nugget Point ‘‘was an absolutely isolated hotel and that made it unique and quite special’’.
‘‘And now it is in a developing area which has got closer and closer to town.’’
For Simpson, the sale had a personal connection as he used to live in what’s the picture framing gallery two properties along, and regularly played squash at Nugget Point.
He thinks the refurbished hotel will appeal to visitors wanting high-end accommodation near Coronet Peak skifield, as well as bringing back
local patronage.
When New Bay Group decided to buy the hotel, it also asked Bayleys to help select a hotel management company.
Kiwi-owned Capstone Hotel Management, which now manages 15 NZ properties, was subsequently appointed.
Capstone founder/managing director Clare Davies says ‘‘we’re thrilled to be involved in Nugget Point again, and having such supportive owners who can see the vision for the future of Nugget Point is fantastic’’.
‘‘It will be a gorgeous property when it’s finished.’’
She notes the new owners have also bought a property to house staff.
