Brookfield Buys Two New Zealand Hotels From Super Fund JV in $150M Investment

Brookfield Asset Management has acquired two New Zealand hotels with a combined 364 keys as the North American giant continues to grow its hospitality footprint in Asia Pacific.

The deal will see the Manhattan-based arm of Canada’s Brookfield invest NZ$250 million ($150 million) to buy and reposition Rydges Wellington and Sofitel Queenstown, according to a Wednesday statement. The seller was NZ Hotel Holdings, a joint venture led by the state-owned New Zealand Superannuation Fund and including private investors Russell Property Group and Lockwood Group.

Brookfield is entering New Zealand’s hotel sector just over a year after the group purchased a 30 percent stake in Tokyo’s Meguro Gajoen complex, which features a 60-key luxury hotel now undergoing redevelopment. Brookfield also bought the 146-key Hotel X in Brisbane in late 2024.

“We are committed to expanding our high-quality hospitality platform across Asia Pacific,” said Ruban Kaneshamoorthy, co-head of Australia real estate at Brookfield. “Both Rydges Wellington and Sofitel Queenstown are located in prime markets with strong long-term demand fundamentals.”

Main Visitor Markets

Located in the capital’s central business district, Rydges Wellington has 280 rooms and suites along with conference facilities, a restaurant and bar, and views across the harbour. The Sofitel Queenstown, situated in a popular South Island tourist destination, has 84 luxury rooms and suites and includes a spa, fitness facilities and multiple dining venues.

NZ Hotel Holdings acquired Sofitel Queenstown in 2020 for NZ$60 million and Rydges Wellington in 2021 for NZ$100 million as part of a strategy launched in 2019 to assemble and upgrade tourism assets across New Zealand’s main visitor markets. The sale to Brookfield was brokered by Michael Simpson, Peter Hamilton and Nick Hill of CBRE.

“Both Wellington and Queenstown remain highly sought-after markets, supported by strong domestic and international tourism demand,” said Simpson, managing director for CBRE’s hotels business in Australia and New Zealand. “Throughout the process it was apparent that the vendors were going to be able to develop a superior outcome for their investors through a sale of the two hotels rather than including it in a larger portfolio sale.”

Brookfield manages NZ$1 billion in assets in New Zealand and plans to continue expanding its presence in the country as opportunities arise, according to Wednesday’s announcement.

The asset manager previously formed a NZ$1 billion joint venture with Tainui Group Holdings to develop the Ruakura Logistics Intermodal Superhub in Hamilton. Brookfield and TGH, which manages investments on behalf of the Waikato Tainui indigenous group, teamed up last year to develop the 30 hectare (74 acre) project linking New Zealand’s two largest commercial ports, Auckland Port and Port of Tauranga.

Kiwi Slices

The world’s most remote developed country is on the radar of overseas buyers, with Singaporean and Malaysian investors having picked up high-profile hotels in central Auckland last year.

SGX-listed Hotel Properties Ltd bought the 139-key InterContinental Auckland from Precinct Properties for NZ$180 million in a deal announced last March, marking HPL’s first acquisition in New Zealand and the largest-ever sale of a single hotel in the country. The group controlled by tycoon Ong Beng Seng plans to expand the property to 196 rooms by repurposing office space.

Later in 2025, Kuala Lumpur-based builder YTL purchased the 225-key Hotel Indigo Auckland for NZ$160 million after a marketing campaign led by Whillans Realty Group’s Brice Clark and McVay Real Estate’s Sam McVay.

Singapore’s City Developments Ltd operates 19 hospitality properties across the North and South Islands through its NZX-listed Millennium & Copthorne Hotels New Zealand. The group controlled by billionaire Kwek Leng Beng launched a takeover bid last year for the remaining shares of the Kiwi unit but failed to reach the 90 percent threshold for compulsory acquisition, leaving CDL holding an 84 percent stake.