There is overseas interest for the nine Youth Hostel Association hostels that are being sold following their closure.
Photo: Youth Hostel Association / yha.co.nz
The hostels were shut late last year because of the extended Auckland lockdown and closed international borders.
Real estate company Colliers said it has received enquiries from prospective international buyers, together with New Zealand operators.
Its investment director Hamish Doig, who is leading the sale, said overseas buyers saw it as a "great opportunity" to enter New Zealand's tourism market.
"Now that we have more clarity around when restrictions are ending, the consensus is that there will be a big bounce with international travellers wanting to come to New Zealand because it's such a desirable destination.
"The YHA properties are garnering such interest because of their fabulous geographic spread. Even though our borders are currently closed, the interest we've had clearly signals that New Zealand is still highly regarded internationally as a tourist destination," Doig said.
The hostels are in Aoraki/Mt Cook, Auckland, Franz Josef, Rotorua, Te Anau, Tekapo, Queenstown, Rotorua, Wānaka and Wellington.
YHA national chair Ian Lothian said its board had no choice but to shut its doors last year.
"YHA New Zealand, traditionally servicing international youth visitors, doubled its domestic guest nights over the past 12 months as it reoriented towards more domestic groups and family stays.
"However, the extended Auckland lockdown, combined with no prospect of an international visitor market this summer, created market conditions that were unsustainable for us."
Colliers national director of hotels and tourism, Dean Humphries, said inbound tourism to New Zealand is forecast to recover to pre-Covid levels by around 2024.
"We think this 'revenge travel' will be led, in part, by the younger generation who will be more comfortable travelling more quickly.
"Unfortunately, due to Covid, there has been considerable attrition in inventory in the budget accommodation sector, particularly in the tourism hot spots, and we believe there will be an acute shortage once demand quickens," Humphries said.
Colliers said buyers could buy the properties individually or as one package.
