New Zealand Hotels Figures – H1 2025

Summary

Hotel occupancy trends varied across the markets with supply growth continuing to drag down Auckland occupancy rates whilst demand growth in Rotorua, Christchurch and Queenstown saw occupancy rates improve. Wellington demand has been significantly impacted by Government policy.

The recovery in annual international visitor arrivals remains slow, constrained by limited flight capacity. Australian visitors showed the strongest growth in the 12 months to June 2025, increasing 11% year-on-year.

Key Points:

• For the year to June 2025, international arrivals increased by 14% compared to the previous year however remain 13% below CY 2019.
• The USA is the only market to have returned to pre-pandemic levels. Australian arrivals, our largest source market, are still 6% below CY 2019.
• Hotel supply grew 3.6% year-on-year and is now 13% above CY 2019. However, demand growth has been slower, resulting in occupancy rates that are 14% below CY 2019.
• Average Daily Rates (ADR) have plateaued at 19% above 2019, while Revenue per Available Room (RevPAR) is 2% above 2019.

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