Former Queenstown backpacker hostel changes hands for $31 million

A Hong Kong-based private equity fund has paid $31 million for a boutique hotel development site in a deal that reaffirms Queenstown’s status as a premier global tourism destination.

The former Base Backpackers hostel at 47-49 Shotover Street was secured by an entity associated with Gaw Capital Partners, a Hong Kong-based private equity fund led by Goodwin and Kenny Gaw.

The deal expands Gaw Capital’s footprint in New Zealand, following its renovation of the Haka House flashpacker hostel in Wanaka.

The Queenstown transaction followed a competitive Expressions of Interest campaign steered by CBRE Hotels’ Peter Hamilton and Wayne Bunz, acting on behalf of Prakash Pandey, one of New Zealand’s largest private hotel owners.

The 977sqm freehold site has high visibility, benefits from heavy foot traffic, and offers proximity to key attractions including Queenstown Mall, the Skyline Gondola, and TSS Earnslaw Lake Cruises.

The property was vacant at the time of sale and includes developed plans for a 69-room boutique hotel, positioning it as a compelling opportunity for brand differentiation in one of the Southern Hemisphere’s most competitive leisure markets.

CBRE’s Wayne Bunz noted that the transaction underscored the significant value of well-located existing hotel assets amid rising construction costs and increasingly scarce investment opportunities in Queenstown’s CBD.

“Investors continue to be drawn to investment safe havens such as New Zealand and Australia. In particular, New Zealand’s absence of stamp duty and capital gains tax is a powerful incentive for offshore capital, especially in world-class destinations like Queenstown,” Mr Bunz said.

CBRE Hotels’ Peter Hamilton added, “The strong buyer interest in the Shotover Street campaign reflects the investor optimism for sustained tourism growth in the Queenstown market.”