InterContinental Auckland sale NZ’s biggest ever hotel sale

Wednesday, 5 March 2025

Auckland’s InterContinental Hotel has been bought by a Singaporean hotelier for NZ$180 million.

One of Auckland’s newest luxury hotels, the InterContinental, has been bought by a Singaporean hotel and investment group for NZ$180 million.

NZX-listed Precinct Properties has announced it has entered into a conditional agreement to sell the 139-room hotel at One Queen Street to Singapore-based Hotel Properties Limited.

It will be the largest single hotel sale ever in New Zealand, and sets a new record price per key for New Zealand hotels, according to commercial real estate firm JLL, which advised on the transaction.

Precinct Properties chief executive Scott Pritchard said the sale of the hotel, which opened early last year, demonstrated a strong endorsement of Commercial Bay and the quality of the hotel located in it.

The hotel had enhanced and added value to the Commercial Bay precinct through the diversity of mix and activity, he said.

Precinct Properties’ Scott Pritchard says the InterContintental Auckland adds significant value to the Commercial Bay precinct.

“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.”

The sale aligned with Precinct’s strategic focus to develop best in class assets and reinvest in further growth opportunities, he said. It would also reduce the company’s committed gearing by 3%.

Once the hotel transaction was completed, Precinct would retain ownership and management of the remaining property at One Queen Street, including the office space on levels 3 to 5.

Hotels Properties Limited is an established owner, operator and developer of hotels, resorts and shopping galleries in 17 countries. It has interests in 41 hotels under well-known brands including IHG.

But its purchase of Auckland InterContinental Hotel marked its first investment in the New Zealand market, and would allow it to expand its hotel portfolio in New Zealand.

HPL has said it planned to expand its luxury hospitality portfolio across key markets in the Asia Pacific region. Last year it launched The Boathouse Tioman in Malaysia and The Four Seasons Hotel Osaka in Japan.

JLL Hotels & Hospitality Group Asia Pacific chief executive Nihat Ercan said the InterContinental Hotel Auckland sale showed Asian capital was flowing to hospitality assets in the Southern Hemisphere.

The InterContinental Auckland sale demonstrates confidence in Auckland as a premier travel destination, JLL says.

“With this landmark transaction, it is clear that New Zealand stands as one of the most attractive hotel markets regionally for investors diversifying into non-traditional markets.”

The sale demonstrated confidence in Auckland's position as a premier travel destination, and reaffirmed the appeal of New Zealand's hospitality sector to investors from Asia, he said.

In January, the Singaporean majority owners of NZX-listed Millennium & Copthorne Hotels New Zealand launched a bid for the roughly 24% of shares in the company they do not already own.

The takeover offer from CDL Hotel Holdings New Zealand, a subsidiary of Singapore Stock Exchange-listed City Developments Limited, valued the hotel company at $238m

Meanwhile, another of Auckland's new luxury hotels was now on the market. The $250m Hotel Indigo, which opened its doors in December, was being marketed by Whillans Realty Group and McVay Real Estate.

Hotel Indigo, another IHG-managed hotel, has 225 rooms over 27 floors of a 42-storey tower. The hotel’s hospitality offerings, including a modern French bistro restaurant and a cocktail bar, were set to open in April.