“The 23 level Rendezvous Hotel Christchurch will be the tallest building in New Zealand’s South Island and is due for completion in late 2008,” said Mr Humphries.

The property will comprise 171 five star hotel suites together with a superior restaurant, bar, reception area, 100 on-site car spaces and a number of penthouse residential apartments.

All hotel suites are subject to a 12 + 5 + 5 year net lease to Rendezvous Hotels and Resorts International with minimum rental growth of 2.5% or CPI, whichever is the lesser.  “The Rendezvous lease provides an extremely strong tenant covenant,” said Mr Humphries.  He added, “This is a fundamental requirement and positive attribute in the current investment climate.”

Rendezvous Hotels and Resorts International is a subsidiary of The Straits Trading Company of Singapore; with shareholder funds of in excess of S$1.8 billion.  “The group operate a number of landmark hotels throughout Asia Pacific and have recently expanded into the New Zealand market with the lease of the 451 room Rendezvous Hotel Auckland,” said Mr Humphries.

Christchurch remains the South Island’s most popular tourist destination.  “Growth forecasts by the New Zealand Tourism Council predict international visitation to increase from 2.63 million in 2006 to  3.39 million in 2013 - a 28.2% increase,” said Mr Humphries.

Domestic tourism in New Zealand is also forecast to show robust growth over the same period.

Despite a slight increase in hotel room supply over the past 12 months, the Christchurch market continues to show robust trading performance.  “Occupancy levels and room rates in Christchurch’s 4 star hotels remain strong and we’re confident that the market will continue to improve,” said Mr Humphries.