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New Zealand’s hotel sector continued its upward trajectory in October, with nationwide revenue per available room (RevPAR) climbing 8.6 per cent year-on-year – the third month of consecutive growth – according to the latest data from Hotel Data New Zealand.
International visitor arrivals rose 7 per cent to 287,718, driven largely by an 11 per cent lift from Australia. While total arrivals remain about 8 per cent below October 2019 levels, the South Island’s recovery continues to outpace the rest of the country. Christchurch reported a 19.5 per cent increase in non-resident arrivals, compared with 5.6 per cent in Auckland and 8.3 per cent in Queenstown.
Auckland steady despite supply pressure
Auckland hotels recorded a 7.6 per cent annual RevPAR rise, though the city remains 13 per cent below October 2023 levels due to a 10 per cent increase in room supply over two years. International visitors made up 35 per cent of guests – around 10 percentage points below pre-pandemic norms – while premium hotels continued to outperform, with 5-star occupancy reaching 75 per cent. Major refurbishments across several hotels and the opening of the 60-room Tribe Hotel added further momentum.
Wellington remains soft
Despite a busy events calendar – including the Tourism Summit and nine other conferences – Wellington recorded its eighth month of RevPAR decline this year. Premium properties again proved more resilient, reporting around 70 per cent occupancy compared with 56 per cent for 3–3.5-star hotels.
Christchurch leads national growth
Christchurch was the standout performer, posting a 27.8 per cent rise in RevPAR and 87 per cent occupancy, the second-highest month of the year. Activity at Te Pae Christchurch remains a key demand driver, with 36 multi-day conferences scheduled across the four months to November. Hotels reported a 35 per cent increase in room nights tied to business events.
Queenstown strong as shoulder season holds
Queenstown achieved 16 per cent RevPAR growth, supported by both occupancy and rate, with average weekly occupancy just over 80 per cent during the school holidays. The resort’s premium positioning remains strong, with 4.5–5-star hotels averaging $373 ADR.
Dunedin records decade-high October
Dunedin hotels posted a 15.5 per cent rise in RevPAR and 76 per cent occupancy – the highest October result in ten years – aided by conference activity and increased business travel linked to major projects. Over the past 12 months, Dunedin RevPAR has grown 6.9 per cent, outperforming the national average.
Outlook: confidence lifts ahead of summer
With increased airline capacity and strong forward bookings reported across markets, hotel operators are optimistic heading into the peak summer season. Nationwide RevPAR for the 12 months to October now sits about 2 per cent above the previous year, signalling a continued rebound for the sector.
