The COVID-19 pandemic and subsequent travel restrictions have had a significant impact on the trading performance of hotels in New Zealand. Prior to early 2020, the New Zealand hotel market experienced impressive performance across all major markets, underpinned by both strong growth in both inbound and domestic tourism demand.
CBRE Hotels has developed a hotel trading forecasting tool for the New Zealand market to deliver forecasts relative to whole markets, specific portfolios and/or individual properties. Key inputs can be adjusted relating to the re-opening of closed rooms as well as the timing and speed in demand recovery.
The tool’s development was in response to considerable market interest regarding the sector’s outlook, finding a path to recovery for hotel performance under low, base and high case scenarios applying differing assumptions.