
Australians Drive Leisure Demand
New Zealand Hotel Performance Focus April 2025
April 2025 saw New Zealand hotels achieve a 2.9% RevPAR increase, with regional destinations thriving thanks to an uplift in Australian visitors and extended holiday demand.
New Zealand Hotel Market – April 2025 Performance Overview
The April 2025 edition of the New Zealand Hotel Performance Focus highlights a 2.9% year-on-year increase in Revenue per Available Room (RevPAR), with regional markets outperforming urban centres. While Auckland and Wellington saw continued weakness, destinations such as Queenstown, Dunedin, Nelson/Marlborough, and Rotorua experienced strong growth—driven by a holiday period that merged Easter, Anzac Day, and school breaks.
A major contributor to this surge was Tourism New Zealand’s “Everyone Must Go” campaign, which successfully boosted Australian visitation by 11% over April 2024. Queenstown led all markets with a 17% RevPAR increase, aided by high-yielding group business, international guests, and premium rate growth. Meanwhile, Auckland struggled with supply expansion and declining occupancy, although its 5-star segment posted modest gains.
Rotorua, Dunedin, and Nelson/Marlborough benefitted from a mix of domestic and international demand, special events, and reduced reliance on motels for social housing. Conversely, the Central North Island faced challenges from poor weather and subdued event impact. Overall, international arrivals rose 11% year-on-year, reflecting a shift toward a higher-value visitor mix, even as total inbound numbers remain below 2019 levels.
This snapshot offers timely insights into market trends, regional dynamics, and evolving visitor behaviour shaping New Zealand’s hospitality sector.