New Zealand Hotels Performance Focus, Aug 2023

Business, Snow and Football drive hotel occupancies

• Revenue Per Available Room (RevPAR) for the main New Zealand hotels in August was 14% up on the same period in 2019 and 24% up on August 2022, according to data reported by Hotel Data New Zealand (HDNZ).
• The results were again positively influenced by the FIFA Women’s World Cup, particularly in Auckland and Wellington which hosted seven matches of the final tournament stages during the first two weeks of the month.
• After poor snow conditions in July, good snowfall in August resulted in strong accommodation demand in and around major ski areas such as the Queenstown Lakes District.
• Average Daily Rates (ADR) continue to show much needed growth, increasing by 7% compared to the same period last year. Compared to 2019, room rates have grown by 28% with the largest growth in the tours and FIT segments followed by the corporate and meeting segments.
• Aircrew rates have slightly declined since 2019, reflecting increased competitive pressure in markets with strong supply growth. This growth compares to a 32.8% increase of employees’ average hourly earnings in the accommodation and food services industry between December 2019 and the second quarter of this year, according to ANZ economist Henry Russell.