Strategy & Planning
Whanganui Hotel Market Demand and Supply Study
Horwath HTL provided comprehensive market research, and supply & demand analysis to support Whanganui District Council's evaluation of hotel development opportunities in this growing regional city.
In 2021, Whanganui & Partners, economic development agency for the Whanganui Region, engaged Horwath HTL to assess the market opportunity and feasibility of a potential new hotel in Whanganui, including market demand analysis, site considerations and longer-term performance projections.
Whanganui District Council engaged Horwath HTL in 2025 to strategically update the earlier report, with a focused review of changed market conditions post-Covid, and implications for the optimal hotel concept needed to support the city’s visitor economy growth.
Project Scope
We began by undertaking primary market research to understand whether Whanganui could support a new hotel, and what form that opportunity should take. Separate surveys and consultation with Whanganui businesses and event organisers, helped to identify unmet needs in the local market, test preferences around hotel standard and facilities, and assess how accommodation constraints were affecting the city’s ability to attract conferences, events and higher-value visitors.
This was supported by our analysis of visitor trends, historic guest nights, hotel & motel supply and performance, as well as market demand drivers and segmentation, which informed our future demand projections through to 2035.
Our recent update refreshed the inventory of accommodation, reviewed recent occupancy and room rate performance, reassessed visitor demand trends and economic indicators, and revisited the hotel concept and operating projections, in light of a more certain post-Covid outlook.
Outcomes & Benefits to the Client
Our initial hotel supply and demand study provided market validation, and gave Council the confidence to embark on an Expressions of Interest process to identify potential partners for hotel investment. The successful process reportedly identified “a broad and encouraging mix” of investors, developers, operators, and landowners willing to collaborate on delivering a new, high-quality hotel in Whanganui CBD.
Our recent report has equipped Council with the up to date commercial rationale needed to support further ongoing engagement with interested parties, toward its goal of enabling Whanganui to capture an increased share of visitor expenditure, and addressing longstanding gaps in commercial accommodation quality and capacity.
Contact for Project
Project Location
Whanganui, New Zealand
