Rydges Rotorua hotel on the market as tourism recovery revs up

The Rydges Rotorua hotel has been listed for sale by NZ Hotel Holdings, offering investors an upscale 203-room hotel property in one of New Zealand’s top tourism destinations. 
  
The hotel, at 10 Tryon Street adjacent to the Whakarewarewa Thermal Valley, is being offered for sale by international expressions of interest.  
  
CBRE's Michael Simpson, Peter Hamilton and Nick Hill have been exclusively appointed to manage the campaign.  
  
The Rydges offers well-established trading strength, strategic location and value-add opportunities.
  
“This is a market-leading hotel asset in this destination, with a strong track record of performance from both its accommodation and restaurant operations. It displays year-round resilience, attracting tourism and conference business across peak and off-peak periods,” CBRE’s Mr Simpson said
  
There is also a strong opportunity for the new owner to add value to the existing revenue streams.
  
“Most of the guest rooms have already been renovated, but there is a further opportunity to refurbish the remaining rooms and increase the hotel’s profitability. The geothermal swimming pool area could also be upgraded to drive additional leisure visitor demand,” CBRE’s Mr Hamilton noted.
  
A landscape architect has been engaged to provide a concept for new landscaping and a private hot tub facility to enhance the pool area, he said.  
  
“This hotel is a significant asset in one of New Zealand’s best-performing tourism destinations. With a proven trading record and a strong value-add opportunity through a room refurbishment programme, it will appeal to a wide range of local and international buyers looking for a key stake in New Zealand’s tourism sector,” Mr Hamilton said.
  
The hotel was originally constructed in the 1960s and has undergone significant refurbishments in 2022 and 2023.  
  
Guest facilities onsite include the popular Chapman’s restaurant, the geothermal outdoor pool, two spa pools, a gym, cultural centre and eight conference and function spaces. These include the 600 sqm Pohutu Conference Centre, which is capable of hosting large events. 
  
Rotorua’s hotel market is performing strongly, with occupancy reaching 81% and an average daily rate of $223 in the year to March 2026 - an increase from the 79% occupancy and $144 average daily rate recorded pre-Covid in 2019.  
  
The city generates around 1.94 million visitor nights annually and close to $800 million in tourism expenditure, with a destination management plan targeting $1 billion in visitor spend by 2030.  
  
RotoruaNZ and Air China also signed a memorandum of understanding in February 2025 to strengthen ties and increase Chinese visitation to the city, adding further momentum to the international visitor market. 
  
The hotel sits on a freehold 10,987 sqm site on the edge of the Whakarewarewa Forest, adjacent to the Whakarewarewa Geothermal Reserve and Living Māori Village. The Redwoods-Whakarewarewa Forest is also within immediate reach, with its Treewalk attraction, hiking trails and a network of around 150km of world-class mountain biking trails.