A substantial accommodation complex, combining valuable geothermal infrastructure with strong redevelopment potential, is being brought to market amid renewed government backing for tourism growth, presenting a timely opportunity to unlock one of the region’s most versatile mid-scale assets, Bayleys brokers say.

Bayleys Rotorua commercial, industrial and business sales specialist, Mark Slade is marketing the freehold site at 52-64 Tarewa Road for sale by tender, closing at 4:00 pm on Thursday, 21st August 2025 (unless sold prior), alongside colleagues Damien Keenan and Wayne Keene.

Slade says the property spans seven individual freehold titles, encompassing an 8,096sqm (more or less) landholding and 3,093sqm (more or less) of existing building area.

“The site has been earmarked for a full-scale refurbishment, with seven of the 28 chalets recently upgraded and a further 15 stripped back to bare structure in preparation, offering a rare opportunity to progress add-value works.”

The complex also includes 64 lodge-style rooms with shared kitchens, lounges, laundry facilities, and bathroom facilities, 12 powered and 5-6 unpowered camping sites, a three-bedroom manager’s residence, and a fully equipped hospitality hub comprising a café, bar, conference room, and two large commercial kitchens.

“A separately tenanted three-bedroom home returning $500 per week provides holding income and an opportunity to generate revenue while development or occupancy plans are put into place.”

The property is situated within a designated Medium Density Residential zone and benefits from valuable existing use rights for tourism activities.

Located beside the local geothermal attraction of Kuirau Park, neighbouring the Rotorua Aquatic Centre, and 1.5 km from the lakefront, the property benefits from its prime location, offering high visibility and connectivity to key visitor amenities.

Bayleys Hotels, Tourism and Leisure national director Wayne Keene says a wave of positive momentum has lifted confidence among New Zealand tourism operators, and the asset’s prime position in one of the country’s most iconic visitor destinations makes it ideally placed to harness growing international interest and resilient domestic travel demand.

“A recent $13.5 million government funding boost to grow international tourism will see campaigns targeted at key markets, including Australia, the U.S. and China. This is expected to bring in 72,000 more visitors and $300 million in spending, supporting policymakers’ goals to double New Zealand’s tourism value by 2034.”

He adds that favourable fundamentals, combined with existing geothermal heating infrastructure, which supplies radiators in all rooms, underfloor heating in key communal areas, and an outdoor heated swimming pool, provide a strong platform for repositioning as a boutique resort, wellness retreat, lifestyle village, or mixed-use accommodation model.

“Geothermal access is a major operational advantage, offering a reliable energy source that reduces long-term operating costs, supports sustainability goals, and future-proofs the asset in a market increasingly driven by ESG-conscious investment.

“This is a project with strong bones, unique infrastructure, and exceptional potential,” he says. “It allows investors or owner-occupiers to bypass many of the time and capital constraints that come with starting from scratch, while offering significant upside from completing refurbishment and reactivating operations.”