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New Zealand’s hotel sector has delivered a strong start to 2026, with performance gains driven by recovering international demand and a busy events calendar across key regions.
New data from Horwath HTL shows national revenue per available room (RevPAR) rose 14.9 per cent year-on-year in March, with first-quarter growth reaching 16.1 per cent, reflecting improvements in both occupancy and room rates.
International recovery drives demand
International visitor arrivals continued to rebound in March, increasing 15 per cent year-on-year and reaching 96 per cent of pre-pandemic 2019 levels.
China and Australia led the recovery, with arrivals up 22 per cent and 20 per cent respectively, while US visitation rose 14 per cent.
Despite geopolitical tensions emerging in late February, overall demand showed no material disruption, with declines from some Middle Eastern markets offset by growth from Asia.
South Island momentum continues
South Island gateways continued to outperform, with Christchurch and Queenstown both recording international arrival growth of more than 20 per cent in the first quarter.
Queenstown volumes are now 71 per cent above 2019 levels, while Christchurch has also surpassed pre-COVID benchmarks, reflecting strong demand for South Island travel and expanded air connectivity.
Events and regional performance lift results
Performance gains were broad-based across the country, supported by major events and increased travel activity.
Christchurch recorded the strongest RevPAR growth among key markets in March, up 18.3 per cent year-on-year, with occupancy reaching 90 per cent for the quarter.
Queenstown also delivered strong results, with RevPAR up 17.7 per cent in March, supported by major activations and a shift towards Asian visitor markets.
In Wellington, a full events calendar including the Aotearoa New Zealand Festival of the Arts, Fringe Festival and Pride Festival contributed to steady growth, although the market remains slightly below pre-pandemic levels.
Rotorua and Nelson–Marlborough also saw demand supported by events, while Dunedin achieved the highest occupancy nationally in March at just over 90 per cent.
Occupancy nearing pre-pandemic levels
National hotel occupancy reached 84 per cent for the first quarter, up from 78 per cent a year earlier and approaching the 86 per cent recorded in 2019.
Hotels sold an estimated 8 per cent more room nights than the same period last year, with international demand up around 11 per cent and domestic demand rising 7 per cent.
Supply and pricing dynamics to watch
While demand remains strong, the report notes that supply growth in some markets is beginning to influence pricing, particularly in Auckland where new room capacity has tempered rate recovery.
Shifts in visitor mix — including a returning Chinese market and reduced share of US visitors — may also influence pricing trends in the months ahead.
Overall, the sector enters the remainder of 2026 with solid momentum, although global uncertainty remains a key watchpoint for future demand.
