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New Zealand’s hotel sector recorded its strongest November performance in nearly five years, with occupancy and room rates buoyed by rising international arrivals and a packed calendar of major events, according to the latest Howarth HTL report.
National occupancy reached 83 per cent, the highest level for November since 2019 and second only to February 2020’s post-COVID peak, while the average daily room rate climbed to $255 — the highest monthly rate in a decade. National revenue per available room (RevPAR) increased 3.8 per cent year-on-year, reaching its strongest position since early 2018.
Performance was strongest in the South Island, led by Queenstown, Christchurch and Dunedin, while Wellington and Hamilton were the only major centres to record annual RevPAR declines, reflecting an uneven recovery across the country.
International arrivals fuel demand
According to Stats NZ, 364,479 overseas visitors arrived in November — an 8 per cent increase on 2024 and equal to approximately 94 per cent of pre-pandemic levels. Growth was driven by visitors from Australia (up 10 per cent), China and the United States (both up 7 per cent), and other markets (up 5 per cent).
The bulk of the growth entered via Christchurch and Queenstown, helping lift South Island demand, while Auckland accounted for around 17 per cent of total increases.
Auckland boosted by concerts and conferences
Auckland hotels delivered modest gains despite hosting fewer large-scale concerts than in November last year. RevPAR rose 1.3 per cent year-on-year, with occupancy reaching 83.9 per cent, its highest November level since 2019. RevPAR of $206 marked the city’s strongest month since March 2023.
Major events provided important spikes in demand. The Metallica concert at Eden Park on 19 November saw hotel occupancy peak at 96 per cent, with room rates 63 per cent higher than the same night in 2024, lifting Auckland’s monthly RevPAR by an estimated three per cent. The impact was smaller than last year, which benefited from one Pearl Jam and three Coldplay concerts.
Even without event days, Auckland’s market remained firm, with RevPAR rising around eight per cent year-on-year, driven by a 6.3 per cent increase in occupancy.
However, cruise tourism dragged on overall demand, with 5,700 fewer passengers arriving in November — a 30 per cent decline year-on-year due to four fewer ship calls, disproportionately affecting Auckland’s overnight accommodation sector.
Wellington stabilises
Wellington’s hotel market remained flat, but signs of recovery are emerging. After prolonged declines, quarterly RevPAR slipped just 0.2 per cent, compared with an average six per cent fall over the previous three quarters.
Conference activity provided a lift, with Tākina Convention and Exhibition Centre hosting six major conferences in November, generating an estimated 6,000 delegate days.
Christchurch leads major centres
Christchurch posted the strongest major-centre results, with occupancy hitting 89.5 per cent, the highest of any city nationwide. Average daily rates rose 6.1 per cent for the month, highlighting sustained pricing strength.
The boost was supported by a 23 per cent year-on-year increase in international arrivals through Christchurch Airport, driven by additional Hong Kong capacity and increased Australian services. Major events at Te Pae Convention Centre, alongside the New Zealand Cup and Show Week, added further momentum.
Queenstown and Dunedin surge
Queenstown recorded a 9.8 per cent increase in RevPAR, led by luxury accommodation, where four-and-a-half to five-star hotels posted 12 per cent growth. Australian arrivals jumped 21 per cent following increased flight capacity. The Queenstown Marathon again triggered peak trading days, with average room rates reportedly reaching $434 and occupancy hitting 88 per cent on race day.
Dunedin’s occupancy surged to 87.9 per cent, its highest level since early 2018, fuelled by concerts, sporting fixtures, festivals and business travel tied to major infrastructure projects, including the new hospital development. However, the city experienced an unexpected 2.2 per cent decline in average room rates, despite the strong demand.
Luxury sector outperforms
Across New Zealand, the five-star hotel segment led the market, achieving 86.8 per cent occupancy, outperforming three- to four-and-a-half-star properties and delivering the sector’s strongest result since January 2020.
Positive outlook
The latest data reinforces the growing role of airline capacity, major concerts, business events and conferences in driving hotel demand nationwide. With all three trends showing further strength heading into summer, industry analysts expect positive results to continue into coming months.
