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New Zealand’s hotel sector posted its first month of revenue growth since April, with August 2025 results showing renewed demand driven by ski season travel, increased international arrivals, and a packed events calendar.
According to the latest Hotel Performance Focus report, nationwide RevPAR (Revenue Per Available Room) increased 2.8 per cent year-on-year, supported by a 5.3 per cent rise in room nights sold. International visitor nights rose 7 per cent, while domestic demand lifted 4 per cent.
National occupancy reached 63 per cent, marking the first time this year it has outperformed 2024 levels, despite a modest 0.7 per cent decline in average daily rates (ADR).
Market highlights
Queenstown led the way with strong ski demand and no new hotel supply diluting the market. The resort town recorded the highest ADR growth in the country, up 8.1 per cent year-to-date.
Christchurch saw occupancy climb to its highest August level in a decade, boosted by an 18 per cent rise in Australian arrivals and more than 80 events scheduled at Te Pae across August to November.
Auckland recorded its first RevPAR and occupancy growth since January, with rooms sold up 9.6 per cent. Premium hotels performed strongly, with 5-star properties averaging 67 per cent occupancy.
Wellington, however, faced headwinds, with RevPAR down 7.4 per cent as event activity was unable to offset the absence of an All Blacks test match compared to last year.
International visitor growth returns
Border crossings by non-New Zealand citizens climbed 5.2 per cent year-on-year, with arrivals from Australia (up 7.4 per cent), the United States (up 2 per cent), and China (up 3 per cent) all growing for the first time in three months.
While overall visitor numbers remain about 10 per cent below August 2019 levels, the August results signal renewed momentum for the hotel sector heading into spring.
About the Report
The New Zealand Hotel Performance Focus – August 2025 provides a monthly snapshot of key trends across major hotel markets, combining STR data with Tourism New Zealand and MBIE insights.
