At least six parties are in negotiations to potentially buy
the Hotel St Clair in Dunedin.
A key component of any sale could possibly be redevelopment
of a separate hotel-owned house property, next to the hotel
on Beach St, which could be demolished to make way for an
extension of 12 to 15 rooms.
Barry Robertson, of Colliers in Queenstown, who had extended
the tender time to Friday last week, said there were in total
28 ''firm inquiries'' for the hotel, which carries a $6.85
million capital value.
Mr Robertson said 11 parties had gone on to sign
confidentiality agreements, to assess the hotel's financial
situation, and there remained six entities ''still in
He said the adjacent Beach St residential site was attractive
to some parties for development, which Colliers was at
present ''quantifying'', and which could allow the 26-room,
three-storeyed hotel to become a 38 to 41-room facility.
The Esplanade block area has been rezoned for 11m-high
structures as of right.
Mr Robertson said of the six parties, there was one
international, already with interests in Dunedin, people from
Christchurch and Auckland, as well as two hotel chains.
''We're looking at pulling together parties for a deal, where
one party would take the whole deal,'' he said.
He said while an outright sale was preferred by the
family-owned Calder Stewart business group, which co-built,
owns and operates the hotel, some parties wanted to lease and
operate the premises, which could be an option for an
Mr Robertson said the hotel, since opening in 2009, had
returned annual occupancy-rate growth. It is understood to
have a total valuation of about $10 million.