The prominent city centre property housing one of Rotorua’s top hotels is up for sale.

The repurposed office building on Hinemoa Street is home to the award-winning four-star serviced apartment hotel, Quest Rotorua Central.

The hotel and a separate ground-floor office leased to Rotorua Chamber of Commerce (RCC) generate a combined rental income of $627,557 plus GST per annum.

The current hotel lease runs through to 2037 with rights of renewal, if fully exercised, extending to 2049. The hotel lease agreement provides for two-percent annual rent increases, plus five-yearly reviews to market.

The RCC lease agreement incorporates market rent reviews every two years.

The freehold land and buildings at 1192 Hinemoa Street, Rotorua, are being offered for sale through Bayleys by way of an international tender.

The property comprises an approximately 2,285-square-metre building on some 910 square metres of land with secure basement parking for 20 vehicles.

Bayleys national director hotels, tourism & leisure, Wayne Keene says the hotel apartments are a mix of studios, one and two-bedroom units ranging from 25 to 60 square metres.

“Catering to corporate clients and free independent travellers, Quest Rotorua Central offers 36 modern serviced apartments and amenities for short or longer stays in a world-renowned heartland of thermal, cultural and adventure tourism.

“The CBD location near major attractions and business hubs ensures high visibility and strong demand,” Keene says.

Quest Rotorua Central has an average rating of 4.8 out of five in reviews by hundreds of guests on Tripadvisor. Accolades to date include being declared New Zealand’s best hotel in Tripadvisor’s travellers’ choice awards and Quest Apartment Hotels’ best hotel in the South Pacific.

The Rotorua hotel is part of Australasia’s leading apartment hotel brand, Quest Hotels, which has over 160 properties in Australia, New Zealand, Fiji and the United Kingdom.

“This former office building with four levels plus basement was repurposed in 2012 and tailored to the specific requirements of Quest Hotels,” Keene says.

“Each unit includes cooking facilities, a fridge and washing machine, supporting self-sufficient or longer stays and distinguishing this from a traditional hotel. Some rooms also feature private balconies and spa pools.”

The building has an Initial Evaluation Procedure seismic rating of 67 percent of new building standard.

“Quest Rotorua Central offers easy access to local attractions and business hubs, maximising its appeal to families, business travellers and tourists seeking a relaxed yet well-equipped lodging experience.

“Its strategic blend of comfort, affordability and location elevates its standing among local competitors,” says Keene.

Keene is marketing the property for sale alongside Bayleys colleagues Carol Cong and Mark Slade.

Cong says the high-profile location ensures high occupancy driven by business and leisure travellers.

“The hotel’s central presence in one of New Zealand’s top visitor destinations – renowned globally for its geothermal attractions, Māori culture and adventure tourism – ensures a consistent flow of guests.

“Rotorua's central North Island location, within easy reach of key population centres, offers investors a strategic advantage amid ongoing economic development and population growth,” says Cong.

The city’s population has swelled by 20 percent since the 2013 census to an estimated 58,800 in June 2024, according to Statistics New Zealand.

International tourist spending in Rotorua grew eight percent and domestic tourism spending 1.5 percent in the year to December 2024. Economic development agency RotoruaNZ aims to grow combined annual card spending by domestic and international visitors to at least $490 million, being 15 percent above pre-Covid levels, by 2026/27.