Ongoing tourism boom in New Zealand is continuing to drive unprecedented growth in hotel occupancy as well as room rates, as shown in the latest research from Colliers International.
The latest New Zealand Hotel Market Snapshot showed that Queenstown and Auckland are continuing to outperform the hotel sectors in other regions.
The year to date data reveals Queenstown recorded an occupancy rate of 90 per cent at an average (ADR) of $240 which is about 15 per cent increase over the same period in 2016. Auckland recorded occupancy of 91 per cent and an ADR of $225, an increase of 16 per cent.
Moderate to strong ADR growth was also recorded in other regions, although occupancy rates appear to have generally plateaued in most main centres.
Dean Humphries, National Director of Hotels at Colliers International said that they are hopeful about the second quarter of 2017 as well which is anticipated to have a strong demand. He continued saying that Auckland has been hosting the World Masters Games, which has helped to drive up occupancy rates with the 25,000 participants visiting the city. More so, it will closely follow the upcoming British and Irish Lions Tour in June and July.
In addition, more than 20,000 fans are expected to visit the shores during the month-long tour, which will create a ‘spike’ in hotel performance, as last witnessed during the previous Lions tour in 2005 and the Rugby World Cup in 2011.
A recent example is the world’s largest hotel operator, Marriott Group, being appointed to manage its first hotel in New Zealand – the 255-room Four Points by Sheraton to be located at 396 Queen Street.
Investor sentiment remains strong despite the developmental challenges faced at this current point in time.
