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Horwath HLT has released their April 2025 report that showed a needed boost to New Zealand’s hotel sector, with Revenue per Available Room (RevPAR) climbing 2.9% year-on-year.
This growth was largely driven by a rise in Australian visitors and the trifecta of Easter, Anzac Day, and school holidays, which extended the peak travel period.
Queenstown was the standout performer, recording a 17% increase in RevPAR. The town benefited from productive group bookings, a rise in international visitors, and premium rate growth. In addition, Dunedin, Nelson/Marlborough, and Rotorua experienced strong demand, mostly by a mix of domestic and international travellers, special events, and a reduced reliance on motels for social housing.
Continued challenges
Unfortunately, major cities like Auckland and Wellington continued to face challenges. Auckland battled with an expanding hotel supply and declining occupancy rates, although its 5-star segment saw moderate gains. Wellington also struggled to match the performance of regional destinations, highlighting the ongoing, uneven recovery across the country.
Campaigns and international arrivals.
Tourism New Zealand’s “Everyone Must Go” campaign played an important role in attracting visitors, contributing to an 11% year-on-year increase in international arrivals. This influx reflects a shift toward higher-value visitors, even as total inbound numbers remain below 2019 levels.
