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Horwath HTL has released the latest report for New Zealand’s hotel sector, that experienced encouraging growth December 2024 and January 2025.
Here’s is what else it showed.
The report indicates a 9.5% year-on-year increase in total border crossings by non-New Zealand residents, with significant growth from key markets such as Australia (up 12%) and China (up 24%). Despite this positive arc, international arrivals remain 11% below pre-pandemic levels, highlighting the ongoing challenges as the sector navigates the effects of global economic fluctuations and geopolitical tensions.
In the hotel industry, the numbers tell a story of careful optimism. Revenue Per Available Room (RevPAR) rose by 5.7% compared to the same period last year, with January experiencing an impressive 8% growth—marking it as the strongest month of 2024. Queenstown was a standout with a 17.2% increase in RevPAR, driven by a surge in Average Daily Rates (ADR) and strong occupancy rates that peaked at 82%.
Christchurch also marked a big turnaround, with a 15.4% rise in room nights sold, partly due to a 25% increase in international arrivals at its airport. Equally, Auckland’s hotel market displayed strength during an influx of new properties, with a fair 6.5% increase in room nights sold.
Rotorua showed strong performance as well, with an 11% increase in RevPAR attributed mainly to higher occupancy rather than rate increases. The report points out that while areas like Rotorua and Christchurch are focused on filling rooms to drive revenues, Queenstown’s ability to charge premium rates highlights its unique market position.
With the opening of the New Zealand International Convention Centre in Auckland now delayed until March 2026, there is a positive spin for domestic-focused markets—such as Wellington and Dunedin— that will be shaped by economic growth and government-related demand.
Looking ahead, the report shows cautious optimism for 2025 but acknowledges that full recovery of international visitor arrivals may not be reality until 2027. As the hotel sector adjusts to changing market dynamics, the focus will remain on improving guest satisfaction while balancing the need for profitability.
