Greg Owen: Co-founder of Stay Luxe Accommodation says there's a lack of supply in luxury accommodation

Demand is outstripping supply when it comes to luxury accommodation.

New Zealand agents say they're turning away half of high-net-worth travellers due to a shortage of properties.

Some are fielding up to 50 requests a week.

Co-founder of Stay Luxe Accommodation, Greg Owen told Mike Hosking that there's a real shortage in Auckland, so hotels are being used instead.

He says they're looking to stay in larger hotels - which are often owned internationally, so the profits are going offshore.

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Episode Transcript

Speaker 1 (00:00):
I've got an issue brewing apparently around our luxury rental

(00:02):
market and the looming foreign buyers changes. So agents telling
us they're turning away half of the high net worth
travelers because demand out strip supply.

Speaker 2 (00:10):
Now.

Speaker 1 (00:10):
Greg Owen's the co founder of a company called State
Lucks Accommodation and is with us.

Speaker 2 (00:14):
Greg morning, Good morning mate.

Speaker 3 (00:16):
Has this been building?

Speaker 2 (00:17):
Has this been building for a while?

Speaker 1 (00:19):
I mean, as far as I know, there's plenty of
houses and places like Central a Tiger, you know, if
you want a flash place to stay.

Speaker 3 (00:26):
Yeah, that's great, there are. But more and more of
these luxury travelers that are coming to New Zealand are
looking for extended stays in Auckland. In Auckland seems to
be a real lack of luxury combination that's available.

Speaker 2 (00:40):
And when you say extended stay, what's that mean?

Speaker 3 (00:44):
You we're from from three weeks up to twelve months. Well,
the individuals are coming to stay for but that's.

Speaker 1 (00:49):
Just a rental twelve months. That's just a rental house,
isn't it.

Speaker 3 (00:53):
It is it is, but it's not just in that case.
And since that these these people are looking for fully
furnished property, they're looking for residences that go beyond your
standard typical rental property.

Speaker 1 (01:07):
The only place you would get like that is somebody
who's got a flash house is on sabbatical overseas for
a period of time, isn't it. I mean, no one
in this country owns a twelve to fifteen million dollar
house and leaves it fully furnished and then just rent
it out.

Speaker 3 (01:21):
You'll be surprised there are a number that do that.
But yes, a lot of the time, a lot of
these people they're looking, they've relocated, they've got their house,
they're just idlenk sitting there. And is an opportunity to
be able to contributed to the demand that's required at
the moment in Auckland.

Speaker 2 (01:38):
Where's the foreign buyer thing coming? Are?

Speaker 1 (01:40):
Are they potentially going to start snapping these places up
and therefore they'll never be for rent.

Speaker 3 (01:46):
Well, that's the other option for you having the foreign
buyers and people that are buying when they do come here.
If they do they buying New Zealand, they're not likely
to be staying here for twelve months, but they may
look too be able to rent their property out as well,
and to be able to provide that shortage of accommodation
for these luxury gifts that are coming.

Speaker 1 (02:06):
I suppose this is all good news that there is demand.
Are they mainly Americans predominantly?

Speaker 3 (02:11):
We're seeing inquiries coming predominantly from America and Europe. The
United States in Germany are the two areas that we're
seeing significant increase.

Speaker 1 (02:19):
From good So is their demands This is a bullish
story to tell.

Speaker 3 (02:25):
I think, so, look, there is demand, there is real increase.
We've seen probably double the amounts of inquiries coming through
Compete to this time last year. The challenge we face
is that there is a real shortage, so we can't
put these individuals into the residents that thereafter, particularly in Auckland,
and so they're generally looking to stay in your larger hotels,

(02:49):
and unfortunately with the hotels, you've got hotels that are
owned internationally and so largely the profits are going offshore
for hotel owners.

Speaker 1 (02:59):
Interesting insight on your grief, appreciated, Greg ow and Owen,
who's the co founder of stay luxA read over the
weekend Sydney Morning Herald they were handing out there were
born again the greatest revamps and reinventions and travel this
year and top of their list was the reinvention or
the refurb of hook A Lodge no less in New Zealand.
So it's getting a good buzz internationally, at least in Australia,
so let's hope it works well for them.

Speaker 3 (03:20):
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Speaker 1 (03:24):
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