New Zealand Hotels Figures – H2 2024

A slowdown in the recovery of international visitor arrivals and weaker economic conditions impacted the New Zealand hotel markets in 2024 with mixed results across the main markets. 

The national hotel occupancy rate was 66.9% down from 68.1% in 2023 and 77.8% in 2019. Average Daily Rates (ADRs) declined by 0.8% in 2024 from the previous year resulting in a 2.3% drop in RevPAR. 

Key Highlights

• International arrivals in the Year to December 2024 were 15% below 2019 with USA arrivals remain the only main source market to have returned to pre-pandemic levels.
• Nationwide hotel supply is 11% above CY 2019 and demand growth has slowed resulting in occupancy rates some 14% below CY 2019.
• ADR’s have flatlined at 19% above 2019 and RevPAR is 2% above.

The Auckland market has been impacted by recent supply increases which combined with a weak winter period, resulted in occupancy rates declining from 69.6% in 2023 to 65.4% in 2024 and a 5.5% decrease in ADR.

Demand in Rotorua continues to recover gradually however key source markets such as China being considerably lower than pre-COVID levels.

Wellington ADR’s declined by 7.2% with the change in government and subsequent spending cuts impacting this market despite growth in international spend.

The Christchurch market experienced growth in demand of 7.8% in 204 and ADR improved by 2.9% to $201 with the Te Pae Convention centre being a key demand driver for hotels. As a result RevPAR improved by 7.7%.

Queenstown continues to perform well with strong demand growth from international visitors. Queenstown International Airport recorded a 10% increase in international arrivals in 2024. Hotels experienced a 12.1% increase in RevPAR due to growth in both occupancy and ADR.