Brookfield Asset Management has invested NZ$250m (€127.7m) to acquire two hotels in New Zealand.
The asset manager has acquired the 280-room Rydges Wellington and the 84-room Sofitel Queenstown hotels from NZ Hotel Holdings.
The latest deal expands Brookfield’s Asia-Pacific hospitality assets, adding to a portfolio that includes the 2024 purchase of Hotel X in Brisbane and Tokyo’s Gajoen mixed-use complex. The asset manager’s New Zealand asset under management currently amounts to NZ$1bn.
Ruban Kaneshamoorthy, Brookfield co-head of Australia real estate, said: “We are committed to expanding our high-quality hospitality platform across Asia Pacific. Both Rydges Wellington and Sofitel Queenstown are located in prime markets with strong long-term demand fundamentals.
“Brookfield will invest approximately NZ$250m to acquire and reposition the two assets, and we see significant potential to enhance their performance through active asset management and targeted capital investment. We continue to look for opportunities to deploy further global capital into New Zealand.”
Marcus Reinders, CEO of NZ Hotel Holdings, said: “We are pleased to complete the sale of Rydges Wellington and Sofitel Queenstown to Brookfield, a highly regarded global investor with significant experience in the hospitality sector. Both hotels are exceptional assets in prime New Zealand destinations, with Sofitel Queenstown achieving a record price per key in New Zealand.
“We are confident they will continue to perform strongly under Brookfield’s ownership. The transaction reflects the quality of the assets NZ Hotel Holdings has developed and the continued investor interest in well-located hotel properties in New Zealand.”
The latest deal was negotiated by CBRE’s hotel business.
Michael Simpson, CBRE, said: “The acquisition of these two iconic properties by Brookfield demonstrates the continued appetite for high-quality hotel assets in prime New Zealand locations. Both Wellington and Queenstown remain highly sought-after markets, supported by strong domestic and international tourism demand.
“Throughout the process it was apparent that the vendors were going to be able to develop a superior outcome for their investors through a sale of the two hotels rather than including it in a larger portfolio sale.”
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