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The latest Performance Focus report by Horwath HTL highlights a mixed performance for New Zealand’s hotel sector in September 2024.
While there has been a modest recovery in international tourism, economic challenges and increased competition are affecting overall hotel performance.
Occupancy levels have seen slight improvements, particularly in major cities like Auckland and Queenstown, driven by international visitors returning to the country. However, smaller regions and domestic-focused markets continue to struggle with lower occupancy rates, reflecting the uneven recovery across the sector.
Average daily rates (ADR) have largely held steady, though some regions are facing increased pressure from rising operational costs, particularly with labour shortages and inflation. Auckland hotels have reported a slight uptick in ADR due to growing demand from international flights.
Looking ahead, the report cautions that while tourism is recovering, economic headwinds and increased room supply will continue to challenge the sector’s growth.
The hotel industry remains focused on adjusting to these changes while seeking long-term strategies for sustainable growth.
