A well-established boutique hotel with a premium reputation and prime positioning in one of New Zealand’s top tourism destinations is being brought to market, offering buyers a turnkey opportunity in the resurgent regional accommodation sector, Bayleys brokers say.

Bayleys Marlborough senior sales consultant Michael Ryan, alongside colleague Erika Williams, is marketing the business and leasehold interest in The Marlborough Riverside Hotel at 20A Nelson Street for sale as a going concern, by negotiation.

The 44-unit hotel is located on the banks of the picturesque Taylor River, five minutes’ walk from Blenheim’s CBD, gaining exposure to State Highway 1 and 6 – the main routes connecting travellers between the North and South Islands.

Ryan says the offering represents a rare opportunity to acquire a substantial going concern business in one of the country’s most desirable visitor destinations.

“Positioned at the gateway to the Marlborough Sounds and at the heart of New Zealand’s most productive wine region, this business benefits from strong year-round domestic and international tourism flows,” he says.

“With capacity for 104 guests, it is ideally configured for a range of guest types – from corporate and event travellers to wine tourists and weekend escapees – with quality facilities, a mix of room offerings, and strong operational fundamentals.”

Originally developed in the 1990s and extended as recently as 2020, the hotel is supported by comprehensive onsite amenities, including a restaurant, bar, conference space, swimming pool and 31 car parks.

Ryan says the most recent addition of a modern 15-room wing has elevated the hotel’s appeal to an increasing business market and well-heeled leisure travellers.

“With a reputation as one of Blenheim’s premier accommodation options, the hotel has also become a popular venue for weddings and corporate events, supported by tailored events packages and a strong service culture delivered by a team of 11 staff.

“This is a true turnkey offering. Everything is in place – from quality chattels and maintenance contracts to embedded systems and staff. This allows the incoming owner to continue with the current model or choose to reposition the operation to suit their investment objectives.”

Bayleys Marlborough Sales Consultant Erika Williams says the leasehold interest runs through to 2053, providing long-term security and operational stability for a new operator.

“The three-decade lease arrangement is a standout feature, significantly de-risking the investment by providing long-term cost predictability. With CPI reviews built in and market rent reviews scheduled at key intervals, it ensures rental growth in line with inflation, while giving investors and operators confidence to plan for the future.

“This structure supports capital investment in the business, knowing the operating platform is secure for the long haul.”

She adds that regional accommodation assets have returned to favour with investors seeking scale and strong income potential in locations resilient to market volatility.

“Blenheim is seeing good momentum, buoyed by a stable market for domestic tourism and demonstrated international interest in Marlborough as a lifestyle and leisure destination. Accommodation providers in the region benefit from strong seasonal demand, complemented by a steady flow of year-round events, corporate travel, and wine tourism.

“Premium hospitality assets in highly visited regions are tightly held. This business has been superbly maintained, enjoys an exceptional profile and is underpinned by real local goodwill. It offers both a secure income stream and long-term growth opportunity for experienced operators and investors alike.”