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Christchurch

Historic West Coast Hotel for sale

JLL marketing The Recreation Hotel, 68-74 High Street, Greymouth


 

 

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hotel 086 small-min.jpgThe landmark Recreation Hotel in Greymouth is for sale through JLL with the sale including the property and business.​

The Recreation Hotel is an established, popular hotel in central Greymouth, which fronts High Street and is located on State Highway 6, the main tourist route through Greymouth township.

The property sits on a 4,500sqm freehold site and consists of three buildings. The main hotel was built in the early 1900s and is over two levels. Upstairs is the five-bedroom manager's living quarters and downstairs is a restaurant, bottle store and bar with TAB and pokie machines. The other two buildings on the site are motel blocks built in the 1970s, with nine units in one block and 21 in the other. Outside there is plenty of parking to cater for all guests and visitors.

JLL agent Chris Harding says, "This is one of the oldest hotels on the coast. It sits on a substantial flat site and the owner has ensured the facilities cater for many uses, making it a thriving business. The property is on the main tourist route of SH6 on the West Coast and only two minutes' drive from Greymouth town centre. Because of this, the property sees many vehicles pass daily and receives great custom from passers' by. Due to its popularity, the business has a high turnover and net profit."

With many commercial properties in Greymouth town centre being on leasehold land, when the current owners Mark and Linda Connors purchased the hotel they set about changing this aspect of the property fairly quickly. Says Mark, "We purchased the business in 2004 and then in 2005 purchased the freehold, this gives our property a great point of difference. The property has only ever had six freehold owners in the past 100 years and that's not many. It has always been a successful business and property investment - evidenced by the number of freehold owners.

"Linda and I carried out major renovations on the main hotel, where we renovated the bar and restaurant and added an outdoor deck area. We also renovated the bottle store last year. Doing the upgrades has been a highlight for us. The property has always been well looked after, however, we wanted to take it to another level, so rather than just slapping on some paint we set ourselves a bigger task and we are proud to say it has paid off.

"We get a mix of custom, from tourists to business people and truck drivers. The restaurant has a fantastic reputation. We have built great relationships with other motels in the nearby vicinity and they complement our business as we often have visitors come from their premises to our restaurant."

Greymouth is a popular place for tourists travelling the South Island to stop and stay. The TranzAlpine train runs daily trips between Christchurch and Greymouth and allows many tourists to train over, stay a night or two to explore Greymouth and surrounding areas, and then take the return train back to Christchurch.

Tourism continues to have a huge economic impact on the West Coast and the ever increasing influx of Asian visitors will ensure that trend continues. According to New Zealand Tourism Forecasts 2017-2023, released by the Ministry of Business, Innovation and Employment, China is expected to become NZ's largest tourism market by spend and reach $4.3 billion, or 51 percent of total visitor spend by 2023.

Says Connors, "The brewery tours are popular. The Coast is also very well known for its greenstone, gold and whitebaiting and many tourists seek these out while here, while others enjoy the scenic tours that are available. It is always interesting to hear from our visitors what adventures they have experienced during their stay."

With Greymouth being the largest town and commercial centre on the West Coast, the township has seen a lot of new development in recent years with a new industrial subdivision on the outskirts of town, a new office park, which is next door to the Recreation Hotel, expansion of the Stillwater Lumber Sawmill, a new Mitre 10 Mega and the establishment of an ITM Building Centre. The major investment of a new hospital is currently under construction and is located only a few hundred metres away, while a new bridge spanning the Taramakau River is also under construction.

One of the newest additions to the town is the Westland Recreation Centre, which is located across the road from the Recreation Hotel and has brought new custom to the property.

Says Harding, "This property is a stalwart of Greymouth. It is well maintained and has provided the current owners with a good turnover during their near 14-year tenure. We are expecting the property to attract a lot of attention from both local and international buyers."

The property is for sale by Open Tender 4pm, Thursday 26 October 2017 (unless sold prior).