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Nelson boutique hostel seeks new owners

Wayne and Anne Trott outside their boutique hostel that caters to a "unique" market of backpackers.

A boutique backpackers in Nelson has been put on the market.

Wayne and Anne Trott have owned the INNbetween Lodge and Backpackers for almost 16 years. 

The original house was built between 1910 to 1920, and turned into a three-storey lodge by the Trotts.

The INNbetween Lodge and Backpackers is at 335 Trafalgar Square, across from Nelson's iconic Cathedral at the top of the central business district. 

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It has consent to house up to 80 guests within a mix of larger common areas, shared spaces and terraced decks. 

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The Trotts turned the house into a "flashpackers" in 2003 and then further refurbished the property into a "boutique hostel" in 2015, allowing for multiple bed configurations

The property had a rateable value of $1 million in September 2015.

"I think we're quite unique, I don't think there's too many places in New Zealand like this."

Anne Trott said the boutique hostel sees a lot of professionals and families staying there.

"We're targeting a market we didn't really believe had been catered for."

Trott said the rooms can be reconfigured into all private rooms if the new owners wished to turn the hostel into a bed and breakfast or hotel. 

"We've got another exciting project on the go and we just would like to free up a bit of capital to go in there," she said.

"We'd love to see someone come in with the love we've got for the property."

Tourism New Zealand's marketing director Andrew Fraser called the backpacker segment a "lucrative market" in April last year.

"They account for over 159,000 visitors to New Zealand a year, which equates to around 11 per cent of total holiday arrivals and have an average spend per visitor of over $3700."

The figures have grown considerably since. Statistics New Zealand found backpacker travellers, ages 18-24 years old, reached 192,000 in the year to May 2017, comprising 10 per cent of holiday arrivals. 

The Ministry of Business Innovation and Employment International Visitor Survey found the average expenditure of backpackers had grown to $3800.

Nationwide hotels and motels are seeing more growth and higher occupancy levels than backpackers, according to Mbie statistics.

Hotels booked almost 14 million nights in the year from April, and motels booked more than 12m.

The Mbie stats found backpackers had just over 5m nights booked over the last year. 

CBRE Christchurch director Merv Davies said "335 Trafalgar Square presents a fantastic opportunity to purchase the freehold going concern or lease the management rights for a unique boutique accommodation business of the highest quality, in an area whose tourism potential is finally being unleashed."

The property is for sale by deadline private treaty, closing on August 10. 

Stuff

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