Australia-based TFE Hotels has broadened its international reach by signing an agreement to manage five hotels in New Zealand, marking a significant addition to its global portfolio. This strategic move strengthens TFE’s presence in yet another country and showcases its continued expansion into key markets.
The collaboration, established with the New Zealand hotel group Heritage Hotels, will see TFE take over the management of five properties, collectively adding over 500 rooms to its portfolio. The properties will be rebranded under TFE’s existing brand names, aiming to increase visibility and recognition of these hospitality assets across the region.
Establishing a New Zealand presence
Under the new agreement, two hotels in Auckland—Adina CityLife and Rendezvous Heritage Auckland—will come under TFE’s management. In Wellington, TFE will take over another CityLife property, which offers apartment-style accommodations for long-term stays. Further expanding its portfolio, TFE will manage a Rendezvous Heritage hotel in Christchurch and a second Rendezvous Heritage hotel in Queenstown, which includes 175 rooms along with facilities designed for meetings and events.
Jeffrey Tang, managing director of Heritage Hotels, explained the rationale behind this new partnership: “TFE Hotels is not only a manager but also an owner and developer. Their strong market presence, which includes over 50 properties in Australia and a robust development pipeline spanning Singapore and Europe, aligns perfectly with our vision for growth.” Heritage Hotels, which operates 10 hotels across New Zealand, will continue to manage the remaining five properties under its own banner for the time being.
This partnership comes as New Zealand’s tourism sector experiences a steady recovery following the pandemic. In the year ending June 2024, the country recorded more than 3.2 million international visitors, up from just over 2.5 million the previous year. The short-term goal is to exceed pre-pandemic tourism levels, which saw nearly 3.9 million visitors in 2019. With more than a third of these international arrivals coming from Australia, TFE is well-positioned to capitalize on this trend by promoting New Zealand and its newly acquired hotels within its home market.
Key Growth Markets for TFE
Chris Sedgwick, TFE Hotels’ Chief Operating Officer, emphasized the importance of this new market expansion: “Auckland and Wellington are prime targets for us, as we already have a solid presence there with our Adina and Travelodge brands. Furthermore, the return of the Rendezvous brand to New Zealand provides our portfolio with greater scale across the Asia-Pacific region, while also marking our entry into the Otago region.”
In addition to its New Zealand expansion, TFE is also growing its footprint in Australia. In the coming months, the company will open the Eve boutique hotel in Sydney, featuring 102 rooms. The launch will be followed by the unveiling of the Hannah Street Hotel in Melbourne in late 2025. This Melbourne project represents a substantial investment of around AUD 150 million, underscoring TFE’s continued commitment to strengthening its domestic portfolio.
TFE’s Global Expansion
Beyond Australasia, TFE Hotels continues to increase its presence in Europe, where it has been operating for over 15 years. The company has established hotels in 12 cities across Germany, Austria, Denmark, and Hungary, predominantly under its Adina aparthotel brand. TFE’s European operations are poised for further growth, with the introduction of its premium A by Adina brand in Vienna slated for 2025. The new development will be housed in the Danubeflats tower and will offer 108 studio, one, and two-bedroom apartments, providing guests with high-quality accommodations and impressive views over the Danube River and Vienna’s skyline.
As TFE Hotels continues to expand across Australasia and Europe, its latest agreement in New Zealand not only highlights its growing international ambitions but also reinforces its commitment to building a diverse and robust portfolio. With a strong focus on key markets, the company is well-positioned to capture a larger share of the tourism sector in the post-pandemic era.
