Investors check in for sale of motel site

The complex housing a popular motel within walking distance of many of Christchurch’s top visitor attractions has been put on the market.

Positioned on arterial Papanui Road, on the CBD fringe, Colonial Inn Motel caters to solo guests, families and groups with 22 self-contained units in a mix of studios and one, two and three-bedroom apartments.

Handy to Hagley Park, Christchurch Casino, hospitals, and the soon-to-open One NZ Stadium, it is a convenient base for domestic and international guests - supported by an airport transfer service and plenty of free on-site parking.

Guest bookings are supported by listings on top global travel sites such as Tripadvisor, Trivago and Booking.com.

The motel property generates a net rental return of $240,000 plus outgoings and GST per annum.

The current lease runs through to 2038 with a further 22-year right of renewal, if exercised, extending final expiry to 2060.

The freehold land and buildings at 43 Papanui Road, Merivale, Christchurch, are now being marketed for sale by Michael Girgis and Sid Charoenpornsavat of Bayleys Canterbury.

The property will be sold by deadline private treaty closing on Thursday 30th October, unless it is sold earlier.

Girgis said the motel complex would appeal to commercial property buyers as an excellent bottom-drawer investment.

“Underpinned by a long-term lease and substantial rental income from an established motel operation, this investment delivers secure, predictable revenue with minimal day-to-day involvement.

“This is backed by a strategic location in a proven accommodation precinct - handy to the city centre, healthcare, bars, cafes and shops, plus key transport routes servicing domestic and international visitors.

“The diverse configurations of the motel’s well-maintained units provide operational flexibility and broad appeal to a mix of short-stay and longer-stay guests,” said Girgis.

The approximately 1,210-square-metre, two-level motel complex has an A-grade Initial Evaluation Procedure seismic rating of 100 percent of new building standard. It is underpinned by a landholding of some 1,670 square metres, zoned Medium Density Residential under Christchurch’s district plan.

Charoenpornsavat said the sale offered new owners a unique chance to secure a stake in ongoing growth in tourism, New Zealand’s second-largest export earner.

“Tourist spending growth in Christchurch outstripped the national average, reaching a record $2.65 billion in the year to March 2025, according to economic consultancy Infometrics.

“This came from a healthy mix of international visitors, who contributed 38 percent of spending, and domestic visitors who spent 62 percent.

“The Government’s new Tourism Growth Roadmap seeks a rapid expansion in national visitor numbers, doubling the value of 2023 tourism exports to nearly $20 billion by 2034.

“With additions like a new state-of-the-art indoor stadium and Te Pae Christchurch Convention Centre, a reinvigorated Christchurch is well-placed to capture more than its fair share of future growth - and Colonial Inn Motel has pride of position to capitalise on this,” Charoenpornsavat said.