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New Zealand hotels recorded strong growth in May, with revenue per available room (RevPAR) increasing 12.3 per cent compared with the same month last year, according to the latest Hotel Data New Zealand figures.
The results were driven by growth in both domestic and international demand, with occupancy increasing 5.3 percentage points to 67.2 per cent and average daily rates rising 3.4 per cent.
International visitors boost demand
International visitor arrivals increased about 5 per cent in May compared with the same period last year, supported largely by a 12 per cent increase in Australian visitors.
Hotels reported international room nights were up about 17 per cent, while domestic room nights increased around 6 per cent. Visitors from Australia, China and other Asian markets were key contributors to growth.
Tour group travel also strengthened, contributing about 45 per cent of growth in room nights sold and accounting for around 13 per cent of total hotel business.
Premium sector leads
Five-star hotels delivered the strongest performance, with RevPAR increasing 19.2 per cent year-on-year and average daily rates rising 8.8 per cent.
The report notes that 4.5-star and five-star properties have consistently outperformed the wider market over the past three years.
Queenstown tops major markets
Queenstown recorded the strongest RevPAR growth among New Zealand’s major hotel markets, up 25.1 per cent. Occupancy increased 9.2 percentage points to 67.9 per cent, while average daily rates rose 8.2 per cent.
Chinese visitors were identified as the largest source of international growth for the resort, while conferences and events also contributed to demand.
Christchurch also recorded strong gains, with occupancy reaching 73.6 per cent and RevPAR increasing 11.8 per cent, supported by higher international visitation and stronger group tour business. Hotels reported almost double the number of Chinese visitors compared with May last year.
Auckland and Wellington continue recovery
Auckland hotels posted a 14.9 per cent increase in RevPAR, with occupancy rising 7.5 percentage points to 67.9 per cent. Growth came from corporate, conference, group and independent travellers. Major events at the New Zealand International Convention Centre contributed about 6,800 delegate days during the month.
Wellington recorded its fifth consecutive period of RevPAR growth, up 10.5 per cent for the first five months of 2026. Tākina hosted eight major conferences generating around 2,900 delegate days, while the city also welcomed New Zealand’s largest board-gaming convention.
Regional picture mixed
Outside the main centres, performance was more varied.
Dunedin maintained one of the highest occupancy rates in the country at 74.2 per cent, although softer room rates led to a slight decline in RevPAR. Rotorua and Hamilton also reported modest declines.
Nelson and Marlborough experienced the weakest results, with occupancy falling from 59.1 per cent to 48.3 per cent and RevPAR declining 18.6 per cent. Operators cited fewer domestic visitors, reduced conference activity and lower air capacity into the region.
The report was prepared by Horwath HTL in partnership with Hotel Council Aotearoa using Hotel Data New Zealand performance data.
