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Horwath HTL New Zealand Hotel Performance Focus has released their report for September 2026 and shows the national hotel market grew again last month – but the gains are coming more from overseas visitors.
RevPAR rose 5.5 per cent nationally. Demand was up 3 per cent, average daily rate (ADR) climbed 3.2 per cent and occupancy lifted 1.6 percentage points to 71.3 per cent.
International room nights took on the lion’s share, up an estimated 18 per cent. Domestic room nights fell 5 per cent.
It was mixed picture across all regions. Five of the 10 key markets reported lower RevPAR than a year ago, mostly in destinations that rely on domestic travellers at this time of year.
Overseas visitors
Stats NZ figures show border crossings by non-New Zealand citizens were up 8 per cent on September last year and 2 per cent above September 2019. The report puts this down to the low New Zealand dollar and extra air capacity.
Australia was again the main source of growth, with arrivals up 11 per cent. Arrivals from China and Hong Kong rose 6 per cent and are now at 95 per cent of pre-Covid levels. The United States and other markets showed little change.
The South Island came out ahead. Queenstown accounted for 44 per cent of the growth in international air arrivals, Auckland for 37 per cent and Christchurch for 24 per cent. Wellington saw a slight drop.
Fewer Kiwis are heading offshore too. Departures by New Zealand citizens fell 5 per cent, which the report says may reflect the weaker dollar and cost-of-living pressures.
Queenstown
Queenstown had the strongest month of the major markets. RevPAR jumped 21.4 per cent, occupancy rose 4.0 percentage points to 80.0 per cent, and ADR climbed 15.2 per cent to $344.
International room nights were up 18 per cent, more than making up for a 10 per cent fall in domestic room nights. Plenty of leisure events, sport and conferences kept demand high through the month.
Auckland and Hamilton
Auckland RevPAR rose 3.4 per cent as occupancy climbed 3.3 percentage points to 70.4 per cent, despite ADR slipping 1.4 per cent. International room nights were up 22 per cent, covering a small dip in domestic stays.
Conferences played a big part. NZICC hosted 13 major national events, generating 19,640 delegate days, plus two international conferences adding another 5,415. Conference and incentive business made up 8 per cent of hotel room nights. A sold-out Warriors–Knights NRL semi-final at Eden Park added more city-wide demand.
By hotel grade, Auckland’s 4.5-star properties had the biggest occupancy gain, rising from 66 per cent to 71 per cent. Five-star hotels still had the highest occupancy at 73 per cent, while four-star hotels were lowest at 65 per cent.
Hamilton was one of only two markets where domestic room nights grew. Occupancy rose 4.0 percentage points to 71.6 per cent and RevPAR lifted 7.6 per cent. Domestic travellers make up around 80 per cent of the city’s room nights and Australians about 15 per cent. The Water New Zealand Conference and Expo at Claudelands and the New Zealand Schools rugby national camp both helped.
Wellington
Wellington occupancy barely moved, sitting at 70.4 per cent.Tākina hosted 10 multi-day conferences and large dinners, and the World of Wearable Art season again brought plenty of visitors to the capital. Even so, hotels reported quieter business and meetings demand, with more free independent travellers (FIT) filling the gap.
Christchurch and other regions
Christchurch recorded its first monthly fall in both occupancy and RevPAR since May last year. Occupancy dropped 1.9 percentage points to 76.6 per cent and RevPAR eased 0.3 per cent. Domestic room nights fell around 11 per cent and business and conference stays were down about 9 per cent. Stronger airport arrivals and a big increase in visitors from China weren’t enough to make up the difference.
Rotorua’s occupancy fell 7.2 percentage points to 63.2 per cent – the fifth month in a row it has been down on the year before. Domestic guest nights dropped an estimated 18 per cent, with conference, events and corporate business the weakest areas. Room nights from China more than doubled, but it still couldn’t fill the domestic shortfall.
Nelson and Marlborough posted a sixth straight month of lower occupancy. It fell 4.4 percentage points to 51.1 per cent, and RevPAR dropped 8.3 per cent. Slower domestic travel and fewer meetings and conferences were behind the decline. International visitors are growing but still make up only around 23 per cent of demand at this time of year.
Secondary Schools Winter Tournament Week, August 31 to September 4, did give a brief burst of demand in several centres, including Auckland, Rotorua, Nelson, Christchurch and Dunedin.
Read the full report here
