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International visitors and a packed events calendar helped drive another strong month for New Zealand’s hotel sector in April, with hotels across the country reporting healthy growth in occupancy and revenue.
New figures from Hotel Council Aotearoa and Horwath HTL show nationwide revenue per available room (RevPAR) increased 11.2 per cent year-on-year in April, supported by rising international arrivals and strong event-driven demand.
The report says international visitor arrivals were up 9 per cent compared with April last year, led by an 11 per cent increase from Australia, a 17 per cent rise from China and a 4 per cent increase from the United States. International arrivals overall reached 95 per cent of pre-pandemic levels.
The stronger Australian dollar was also believed to have supported trans-Tasman travel demand.
Premium hotels outperform
The report highlighted continued strong performance from newer and higher-quality hotels, particularly in Auckland and other main centres.
“The popularity of 4.5–5 star hotels relative to older 3–4 star stock is evident not only in Auckland but across the country,” the report says.
Researchers said travellers were continuing to prioritise quality and experience, with guests willing to pay a premium for differentiated accommodation offerings.
While international demand remained strong, domestic travel appeared softer, with domestic room nights increasing just 2.1 per cent nationally. The report linked this to inflationary pressures and economic uncertainty affecting local travellers.
Events drive regional demand
Christchurch recorded its highest April occupancy since 2019, reaching 80.9 per cent.
The city benefited from the inaugural Supercars ITM Christchurch Super 440 event and the DHL Super Rugby Pacific Super Round, which together attracted crowds of about 140,000 people.
According to STR data cited in the report, the Supercars event alone pushed hotel occupancy close to 90 per cent for the week, while lifting average daily room rates by 26 per cent and RevPAR by nearly 46 per cent.
Wellington hotels also recorded their fourth consecutive month of RevPAR growth, reversing declines seen through much of last year.
The city’s performance was supported by events including the first New Zealand edition of the ULTRA music festival, which attracted about 23,000 attendees, and the 21st WONCA World Rural Health Conference at Tākina Wellington Convention & Exhibition Centre.
Despite a 5 per cent decline in domestic room nights, Wellington hotels reported a 19 per cent increase in international room nights.
Queenstown and Auckland remain strong
Queenstown continued its strong run, with RevPAR rising 17.6 per cent year-on-year. Occupancy increased to 81.5 per cent, while average daily rates rose 11.9 per cent.
The report linked part of the region’s performance to the Warbirds Over Wānaka airshow, which attracted more than 60,000 attendees and reportedly generated about $40 million in economic impact.
In Auckland, RevPAR increased 9 per cent year-on-year, driven largely by demand for premium accommodation.
The opening of the 325-room Radisson Red Auckland in February increased Auckland’s luxury hotel supply by about 8 per cent, although existing five-star hotels still recorded occupancy gains while maintaining room rates.
The New Zealand International Convention Centre also contributed to hotel demand, hosting seven major events in April involving about 4,700 delegates from New Zealand and Australia.
