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New Zealand’s hotel sector recorded another month of solid growth in October, with nationwide RevPAR rising 8.6 per cent year-on-year, according to the latest Horwath HTL New Zealand Hotel Performance Focus. It marks the third consecutive month of gains after a softer first half of 2025, lifting RevPAR for the 12 months to October to around 2 per cent above the previous period.
International visitor arrivals increased 7 per cent to 287,718, with arrivals from Australia up 11 per cent. Growth was strongest through Christchurch Airport, where non-resident arrivals climbed 19.5 per cent, compared with 5.6 per cent in Auckland and 8.3 per cent in Queenstown. Total arrivals remained about 8 per cent below October 2019.
Auckland lifts, but supply growth continues to constrain recovery
Auckland hotels posted a 7.6 per cent increase in RevPAR. However, RevPAR remains around 13 per cent below October 2023 because of a 10 per cent increase in room supply over the past two years.
Five-star properties continued to outperform, reaching 75 per cent occupancy — around eight to 10 points ahead of 4.5-star and midscale hotels. Several major refurbishments are underway or recently completed across the city, including at the Crowne Plaza, JW Marriott, Adina, CityLife, Rendezvous Heritage Auckland, Pullman Auckland and Grand Millennium. Accor also opened the 60-room Tribe Hotel on Fort Street in October.
Wellington sees another soft month
Wellington recorded its eighth month of negative year-on-year RevPAR despite a busy calendar that included the annual Tourism Summit and nine other conferences attracting approximately 3700 attendees. Premium hotels showed some resilience, with 4.5–5-star properties achieving around 70 per cent occupancy compared with 66 per cent for 4-star hotels and 56 per cent for 3–3.5-star operators.
Christchurch leads national growth
Christchurch posted the strongest performance nationwide, with RevPAR up 27.8 per cent and occupancy reaching 87 per cent — the city’s second-highest rate this year. Activity at Te Pae remained a major driver, with 36 multi-day conferences held over the four months to November and hotels reporting a 35 per cent rise in room nights tied to business events.
Queenstown and Dunedin continue strong momentum
Queenstown achieved 16 per cent RevPAR growth, supported by high leisure demand during school holidays. Weekly occupancy averaged just over 80 per cent, and premium properties continued to gain market share, with 4.5–5-star hotels achieving an ADR of $373.
Dunedin delivered a 15.5 per cent RevPAR increase and reached 76 per cent occupancy — its highest October level in a decade. Performance was supported by strong conference activity and increased business travel linked to major local projects. Over the past year, Dunedin RevPAR has grown 6.9 per cent, ranking fourth among major markets.
Outlook: confidence ahead of summer
With airlines increasing capacity for the summer season and forward bookings tracking strongly, operators are optimistic about continued demand growth heading into the peak period.
