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Howarth HLT has released the latest report for May 2025, showing our hotel sector saw another uneven month in May 2025.
While overall hotel performance eased across the country, a few high-performing markets and premium properties delivered some bright spots despite ongoing challenges.
According to Hotel Data New Zealand (HDNZ), national Revenue per Available Room (RevPAR) dropped by 4.2% compared to May 2024. This decline was driven by a 1.5% fall in occupancy and a 1.8% decrease in the average daily rate (ADR). Major urban centres—Auckland and Wellington—continued to drag the national average, while Rotorua, Queenstown and high end hotels stood out with impressive results
Rotorua proved to be the country’s top hotel performer in May, recording a high 25% year-on-year increase in RevPAR. This was due to both higher occupancy and room rates, sustained by the hosting of TRENZ, our international tourism trade event. The increase of delegates into Rotorua significantly lifted its hotel performance during the month.
Despite a 6.8% RevPAR drop overall in Auckland, its 5-star hotels stood out with a 2.8% RevPAR increase. These premium properties saw the highest occupancy rates at 65.6%, an increase of 2.5 percentage points year on year. Room nights sold in Auckland rose 1.9%, even as 807 new rooms were added to the city’s supply—most of them 5-star rated.
Queenstown followed the trend toward luxury, with 4.5 to 5-star hotels posting a 15.4% RevPAR increase year to date—more than double the 6.8% growth in the 3-4 star rated accommodation. In May alone, these high-end properties lifted their ADR by 7.4%, and over the year, ADR has jumped 14%. Although occupancy in May stayed below 60%.
Wellington remains under pressure, with RevPAR falling 9.5% year on year. While the Tākina convention centre hosted five major events in May, totalling 2,866 delegate days, this wasn’t enough and there was still a decline in domestic corporate and government-related travel. The capital has now recorded RevPAR losses in 10 of the last 12 months, leading to a increasing annual drop of 10.2%.
Christchurch also faced a tough month, experiencing a 9.5% RevPAR drop despite a 4% increase in room supply and fewer conference events. The 3-4 star rated accomodation took the biggest hit, with RevPAR down 18%. Equally, the Central North Island suffered from a drop in events and domestic travel, further fuelled by a 43% increase in reported room supply, which included five additional hotels.
On a positive note, international visitor arrivals were up 5% year on year in May and reached 89% of May 2019 levels. Particularly encouraging was the 31% year-on-year rise in arrivals from China (including Hong Kong). However, overall purpose-driven travel (business, conferences, holidays) remained quiet, recovering to just 83.5% of pre-COVID levels. Arrivals from Australia were at 92% of 2019 levels, while those from the United States exceeded them at 115%.
A recent visa trial enabling Chinese tourists arriving from Australia to enter New Zealand without a separate New Zealand visa is expected to support and see further growth.
