Hotel signing highlights Queenstown demand

A landmark hotel signing in Queenstown is reinforcing the depth of global operator appetite for New Zealand’s tourism sector, with Bayleys’ Hotels, Tourism & Leisure team playing a central role in facilitating the introduction of a new international lifestyle brand to the market.

Radisson Hotel Group has confirmed the signing of Radisson RED Hotel Queenstown, a purpose-built, 221-room lifestyle hotel scheduled to open in early 2028. The project, developed by private Kiwi firm Redwood Group, will anchor an emerging mixed-use precinct within walking distance of central Queenstown, further extending the brand’s footprint following its recent Auckland debut.

Bayleys Retail Sales and Leasing director, Ash Hira, who was instrumental in securing the agreement, says the deal reflects both the resilience of Queenstown’s accommodation market and the increasing sophistication of global capital targeting New Zealand.

“This was not a transactional process in the traditional sense,” Hira says. “Discussions began well before the pandemic, and the execution path required navigating a period of extraordinary global disruption, shifting valuations, and evolving brand requirements.

“What it ultimately demonstrates is the depth of conviction from both developer and operator in Queenstown’s long-term fundamentals.”

The hotel will feature a design-led offering aligned with the Radisson RED brand’s positioning, including vibrant social spaces, rooftop hospitality, and flexible meeting environments tailored to a new generation of experience-driven travellers. Its location, within a fast-evolving precinct incorporating retail, dining and community infrastructure, reflects a broader shift toward integrated, lifestyle-oriented development.

Owner of Redwood Group, Tony Gapes, says his team is committed to delivering high-quality developments that contribute meaningfully to the evolution of Queenstown’s built environment.

“Having delivered many landmark projects across Queenstown, we take a long-term view on where and how we invest. This is a market we know intimately, and one where well-considered development continues to be rewarded.

“Bayleys played a critical role in shaping and advancing this outcome. The process required careful navigation through changing market conditions, and their ability to bring the right parties together and maintain momentum over time was instrumental.

For Radisson Hotel Group’s managing director of Australasia, Lachlan Howell, the signing underscores both the strategic importance of the New Zealand market and the growing appeal of lifestyle-led accommodation formats.

“Australasia is primed for high-performing lifestyle hotels, and Queenstown is an ideal stage for Radisson RED. We were particularly impressed by the commitment shown by Ash Hira and the Bayleys team, who worked alongside us through complex structuring, evolving market conditions, and a highly competitive tender process.”

Bayleys’ Hotels, Tourism and Leisure national director, Wayne Keene, says the transaction sits within a broader resurgence across the accommodation sector, where global brands are increasingly seeking footholds in high-performing leisure destinations.

“We’re seeing a rewriting of capital towards markets that offer year-round demand drivers, constrained supply pipelines, and international appeal,” Keene says.

“Queenstown embodies that. It is a diversified, four-season market supported by infrastructure, connectivity and sustained international visitor demand.”

Keene says the structure of the Radisson RED transaction also reflects a wider trend towards partnerships between experienced local developers and global operators, combining on-the-ground delivery capability with international distribution and brand power.

The deal adds to a growing pipeline of activity facilitated by Bayleys’ Hotels, Tourism & Leisure team, which has remained active across resort, urban and regional markets despite a complex macroeconomic backdrop.

Recent transactions and advisory mandates have spanned resort-scale assets, regional accommodation offerings and mixed-use development opportunities, reflecting continued investor appetite for assets with both operational income and underlying land value.

“Capital is moving more selectively in the current environment,” Keene says. “In this case, it’s the convergence of a globally recognised lifestyle brand, a proven local developer and one of the strongest tourism markets in the Southern Hemisphere.”

With further international brand expansion anticipated and domestic tourism fundamentals continuing to strengthen, Keene says New Zealand’s accommodation sector is entering a new phase of evolution.

“The next leg of this economic cycle is increasingly defined by the quality of product, of partnerships and execution.”