Hong Kong Private Equity Fund Acquires Queenstown Hotel Site for $31 Million

Gaw Capital Partners, a Hong Kong-based private equity fund, has purchased the former Base Backpackers hostel located at 47-49 Shotover Street in Queenstown, New Zealand, for $31 million. The transaction was managed through an entity associated with Gaw Capital Partners.

The 977-square-metre freehold property is situated in central Queenstown, near Queenstown Mall, the Skyline Gondola, and TSS Earnslaw Lake Cruises. The site is currently vacant and includes developed plans for a 69-room boutique hotel.

The sale was conducted through a competitive Expressions of Interest campaign led by CBRE Hotels’ Peter Hamilton and Wayne Bunz, acting on behalf of Prakash Pandey. Pandey is among New Zealand’s largest private hotel owners.

Gaw Capital Partners’ acquisition follows its previous activity in New Zealand, including the renovation of the Haka House hostel in Wanaka. The purchase expands the fund’s portfolio in the country’s hospitality sector.

The Queenstown site is located in an area with high pedestrian traffic and visibility. The property’s central location and proximity to major tourist attractions are cited as key factors in the transaction. The developed plans for the site call for a 69-room hotel, with the potential to add new accommodation capacity to Queenstown’s competitive tourism market.

CBRE Hotels representatives indicated that the transaction reflects ongoing investor interest in established hotel assets, particularly amid rising construction costs and limited investment opportunities in Queenstown’s central business district.

The sale also highlights continued offshore investment in New Zealand’s hotel sector. Market observers note that New Zealand’s lack of stamp duty and capital gains tax remains a consideration for international investors.

No timeline for the construction or opening of the planned hotel has been announced. The property remains vacant as of the sale’s completion.