PRESS RELEASE: Colliers International
Colliers International has been exclusively appointed to sell the 72-room, 4.5 star Hotel Coachman, arguably Palmerston North’s most popular hotel and event facility.
Strategically situated on a prime freehold site of 7,058sq m bound by Fitzherbert Avenue and Chaytor and College streets, the Hotel Coachman provides a mix of well-appointed hotel and motel rooms together with an award- winning restaurant and bar, four function rooms, and a range of recreational facilities.
The hotel’s well-manicured gardens also feature heavily in the local wedding scene.
Dean Humphries, National Director of Hotels at Colliers International, says the property is one of the most established and popular accommodation and events venue in the Manuwatu region, and a clear market leader in Palmerston North.
Located at 140 Fitzherbert Avenue, just 800m from the city centre, the hotel is a favourite of many of the region’s corporate and business travellers, as well as often hosting sporting teams and events guests.
Humphries says the effects of New Zealand’s current tourism boom are now being felt in the provincial markets with many regions enjoying rising occupancy and room rates, culminating in increasing revenue and profitability margins.
“We are witnessing an increased level of interest for provincial tourism accommodation assets as investment opportunities in the large cities are simply not available due to existing owners holding on to their properties to reap significant gains from buoyant trading conditions,” he says.
“Furthermore, savvy investors are now realising that provincial hotels are excellent value for money, offering significantly higher investment returns, in some cases in excess of 10 per cent per annum; underpinned by a strong revenue and profit base.”
Humphries notes recent transactions completed by Colliers International in 2017, such as the Ambassador Hotel in Hamilton, SilverOaks Resort Heritage in Rotorua and The Park Hotel in National Park, are prime examples of growing investment interest in the regional hotel sector.
“More often than not, purchasers were able to secure established assets at below replacement cost and with strong prospects of further growth as the tourism boom continues.”
Humphries says the Hotel Coachman comprises a 42-room hotel, a 29-unit motel complex, and a standalone two- bedroom villa.
The Tudor-style hotel, built in 1986, occupies 4,239sq m over three levels.
Its well-appointed guest rooms include 30 standard rooms of 25sq m each, 10 deluxe rooms of 26sq m each, and two first-floor executive suites of 48sq m and 68sq m respectively.
“All are presented to a high standard, in keeping with the building’s traditional features, and feature in-room phones and Wi-Fi access,” says Humphries.
“The standard rooms feature queen size beds, while the deluxe and executive rooms feature king size beds. Most have wall heaters, while the third-floor deluxe rooms are air conditioned.”
The motel, built in 1969 and progressively extended and upgraded between 1973 and 2009, occupies 1,530sq m over a single level.
“It offers 23 studio units of between 20sq m and 29sq m, and six family units of 38sq m,” Humphries says.
“All but six of the studio units are self-contained with kitchenette and bathroom facilities.”
The 214sq m standalone villa, located at the southern end of the site, was built in 1975.
“This fully self-contained, two-level building offers a spacious living area, two bedrooms, a kitchen, a bathroom, air conditioning, and a private balcony overlooking the hotel garden.”
Humphries say all guest rooms are serviced by the main hotel lobby, which is accessed via Fitzherbert Avenue and provides access to 24-hour reception and concierge services.
“The lobby is presented to a high standard with marble tiles and carpet flooring, soft recessed ceiling lights, and extensive use of rimu joinery,” he says.
“A feature staircase in the lobby provides access to the hotel’s upper floors, while a passenger lift is also provided in the corridor to the rear of the reception area.”
Guest facilities include a gymnasium, outdoor swimming pool, indoor and outdoor spa pools, and a guest laundry with coin-operated washing machines.
Ample on-site parking is provided, with 40 secure basement car parks beneath the hotel and 22 open air car parks.
Food and beverage is served at the 152sq m La Patio Cafe and Bar, which offers both indoor and alfresco seating for some 60 diners.
The hotel’s four function spaces can cater for events of up to 250 delegates, with additional capacity from the restaurant.
The 45sq m McKelvie Room, 152sq m Hunterville Room and Bar, and 24sq m La Patio Club Room, located on the ground floor, can be opened to form one large open-plan event space.
Access to the picturesque gardens is via the McKelvie Room and Hunterville Bar. The 80sq m Green Room, located on the second floor, looks out over the garden.
Back of house facilities include management and staff offices, an in-house laundry area with multiple commercial- grade washing machines, and a commercial kitchen.
Page 2 of 3
A retail tenancy within a two-level freestanding building, currently occupied by a hairdressing salon, provides additional income.
Humphries says the property comprises five freehold titles, which allows for multiple options.
“The garden villa takes up little of its underutilised 809sq m title, which could either be used to expand the hotel or subdivide and divest,” he says.
“In addition, the hotel and motel buildings are on the different titles, offering the possibility of splitting these assets.”
The Hotel Coachman is for sale with vacant possession by way of an expressions of interest campaign closing at 4pm, Wednesday 15 November 2017, unless sold prior.