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New Zealand’s hotel sector recorded one of its strongest months since the pandemic in February, driven by a surge in international arrivals and a packed national events calendar.
New data from Horwath HTL shows national hotel occupancy reached 89 per cent, bringing the market broadly back in line with pre-COVID levels, while RevPAR rose 22 per cent year-on-year, marking the strongest monthly growth since August 2023.
According to Stats NZ, international visitor arrivals increased 11 per cent compared with February 2025, with China and Hong Kong leading the recovery.
Arrivals from those markets rose 32 per cent year-on-year, lifting the segment to 97 per cent of pre-pandemic levels, while Australian arrivals grew 13 per cent.
Chinese New Year falling on February 17, 2026 – later than the previous year – helped boost travel demand during the month. Even when January and February are combined, arrivals from China were still up 18 per cent year-on-year, suggesting underlying demand strength.
Major centres post strong gains
All major regions except Nelson–Marlborough recorded RevPAR growth above 10 per cent, with Queenstown leading performance nationally.
Auckland hotels reported 89 per cent occupancy, matching pre-COVID levels, with strong growth in average daily rate. Five-star hotels led the market with 91 per cent occupancy, highlighting strong compression at the top end of the city’s inventory.
Rotorua also recorded solid gains, with occupancy reaching 87 per cent, close to its historic February peak.
In Wellington, occupancy climbed to 83 per cent, the city’s strongest February performance since 2020, supported by major events including the New Zealand Festival of the Arts and concerts at TSB Arena.
Christchurch hotels experienced another strong month, with major events including Electric Avenue and Crankworx helping drive leisure demand alongside conference activity at Te Pae.
Queenstown continues to command premium rates
Queenstown remained the country’s strongest pricing market.
Occupancy reached 92 per cent, up from 88 per cent a year earlier, while average daily rate rose 24 per cent to $450, the highest monthly ADR recorded for the destination.
Three-to-four-star hotels averaged around $365 per night, while four-and-a-half to five-star properties reached about $550.
However, the report notes high pricing also raises expectations around quality and service delivery, with guest review analysis indicating value perception in Queenstown hotels trails comparable markets such as Auckland, Sydney and Melbourne.
Dunedin records highest occupancy
Dunedin was one of the standout performers on occupancy, with five reporting hotels achieving 97.7 per cent occupancy, the highest level recorded for the market.
Demand was supported by business travel, Chinese New Year bookings, and overflow from busy South Island destinations including Queenstown and Christchurch.
