The freehold land and buildings associated with the popular Anchor Inn beachfront motel in Kaikōura are for sale, providing investors with a passive bottom-drawer investment opportunity which leverages strong domestic and international visitor activity in the town.

The prominent accommodation facility along Kaikōura’s main street, The Esplanade, comprises 15 spacious self-contained motel units of varying sizes with some spanning two levels, plus three-bedroom standalone manager accommodation on a circa-2,003sqm flat corner site. There is vehicle entrance off Margate Street, and guest pedestrian access off The Esplanade.

The exterior of the Mediterranean-inspired buildings was recently refreshed and the property is presented in excellent condition. Located across the road from the beach, the property boasts grandstand views of the Pacific Ocean and Kaikōura Ranges, and sits roughly halfway between the town’s main retail strip and the historic Pier Hotel on the nearby peninsula that visitors flock to.

The property returns net annual income of $195,000 plus GST and outgoings, with 27 years remaining on the long-term lease, and built in rental growth with two-yearly market rent reviews. The land is zoned Medium Density Residential, which future-proofs the long-term value of the property.

New owners took over the well-established motel operation in April this year bringing fresh enthusiasm to the role, and the Anchor Inn has a 4.7 rating on travel platform Tripadvisor’s 1-5 scale, indicating it is well-regraded by guests.

208 The Esplanade is for sale by deadline private treaty closing 4th July, unless sold prior, and is being marketed by Gill Ireland, Bayleys Nelson, in conjunction with William Wallace and Jesse Paenga of Bayleys Christchurch.

With New Zealand’s international tourism numbers rebounding and domestic tourism performing well, there is considerable interest in investment properties aligned to the sector, says Ireland.

“As the country’s second highest income earner, our tourism industry is now bouncing back after pandemic disruption, with 3.3 million international visitors in the year ending December 2024, a 12-percent increase on the previous year.

“There’s also demonstrated investor demand for well-performing accommodation assets, with freehold investment opportunities such as Anchor Inn finding good traction with buyers. Assets like this which have long-term leases, and provide home and income for the operator, means there is high motivation to be successful, and to keep the property maintained.

“The motel segment of the accommodation market is enduringly popular with travellers, allowing guests to self-cater and to have more space than a hotel room would usually offer, so investors can take confidence from the data which shows good support for motel beds.”

Domestic and international tourism is strong in Kaikōura, with whale watching, mountain biking, hiking and other recreational drawcards supporting the town’s appeal all-year round, says Ireland.

“Last year, DarkSky International officially designated Kaikōura as an International Dark Sky Sanctuary which gives the town another reason for people to visit.

“Kaikōura has a laidback small town feel, yet offers compelling experiences for visitors, with the accommodation and hospitality sector playing an important part in the town’s visitor economy.

“Properties with immediate access to the beach, panoramic views and of this investment calibre seldom come to the market, so investors are expected to be attracted to this coastal opportunity.”

Bayleys general manager South Island commercial and industrial, William Wallace says investor eyes are increasingly focusing on investment assets on “the mainland”, recognising the potential for strong returns and the broad range of opportunity available.

“There’s definitely opportunity in the South Island for investors looking to secure commercial investment assets in pivotal locations. Kaikōura is an untapped market in my opinion, and while property does tend to be tightly held, anything we bring to market does garner attention.

“Anchor Inn represents a classic hands-off investment offering a premium beachfront location, secured by a strong lease. and underpinned by escalating confidence in the tourism sector.”