NRMA Travel Expands Into NZ

Author: NRMA MediaDate: 18 January 2008

NRMA Motoring & Services has expanded into New Zealand with the purchase of Thrifty New Zealand, the Novotel Hotel Palmerston North and Adventureworld New Zealand.

The $20 million investment in the New Zealand tourism industry follows a three year strategy by the NRMA to diversify its investment portfolio and deliver more benefits to members in travel.

This growth includes the purchase of 12 Travelodge Hotels, the Treasure Island holiday park on the Gold Coast and four holiday parks across NSW, Thrifty Australia and Adventureworld Australia.

NRMA's growth in the travel and touring sectors has helped achieve the company’s strongest financial position since NRMA Motoring & Services split with NRMA Insurance in 2000 and helped achieve a 40 per cent increase in operating revenue last year.

NRMA President, Alan Evans, said today’s announcement was the natural next step in NRMA’s long-term strategy to diversify its investment portfolio and deliver exciting new benefits to members.

"Our members told us that travel and holidays were important to them and they wanted the NRMA to expand in this area – we’re achieving this in Australia and now the company is crossing the Tasman," Mr Evans said.

"The investments announced today will give the NRMA a foothold in the exciting and fast-growing tourism industry in New Zealand and provide our members with special benefits when they travel.

"One million Australians travel to New Zealand each year - so we will now be encouraging NRMA members to consider New Zealand as a holiday destination and make the most of their special member discounts at Thrifty and Travelodge."

The purchase of 70 per cent of Thrifty New Zealand will be made by Thrifty Australia, in which NRMA is the 75 per cent majority shareholder.

The Novotel at Palmerston North will become New Zealand’s first Travelodge Hotel and become a key part of a growing chain of hotels catering to local domestic, Australian and other international travelers and tourists.

"Travelodge Australia has built a significant market in attracting tourists from Europe as well as the domestic market and we envisage that continuing in New Zealand," Mr Evans said.

"We want to promote New Zealand to our members and Adventureworld will develop special New Zealand holiday packages for them to make the most of their holidays."

NRMA CEO, Tony Stuart said that the NRMA would continue to look for ways to grow its business in travel and tourism and is particularly interested in investment opportunities in New Zealand as well as Australia.

"The NRMA set upon a strategy three years ago to buy businesses that our members have an interest in and will also provide a stable return to the company," Mr Stuart said.

"New Zealand provides the NRMA with outstanding investment opportunities because of the strength of its tourism.

"As someone who has lived in New Zealand I know the enormous potential this country holds in tourism and as a popular holiday destination for our members.

"Our two countries have great synergies and we hope today’s announcement is the start of a long association between NRMA and New Zealand." 

Thrifty New Zealand

Thrifty Australia will purchase a 70 per cent stake in Thrifty New Zealand. NRMA currently owns 75 per cent of Thrifty Australia. Thrifty New Zealand operates offices in all major airports across New Zealand.

Novotel Hotel Palmerston North

NRMA will purchase a 50 per cent stake in the Novotel Hotel Palmerston North alongside investment partner Mirvac. The hotel will be rebranded to trade under the Travelodge Hotel name and join NRMA’s stable of 12 Travelodge Hotels across Australia. Novotel Palmerston North is an 85-room facility and has an annual occupancy level of over 80 per cent.

Adventureworld New Zealand

Adventureworld New Zealand is a wholesale travel business that sells travel and holiday packages to travel agencies across the country. NRMA currently owns Adventureworld Australia and will acquire a 70 per cent interest in the New Zealand operations. The company is based in Auckland.