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Hotel RevPAR plummets 40% in 2020 – TIA

11 Jan 2021  By Staff Reporter | news@tourismticker.com | @tourismticker

Source: HDNZ

Hotel revenue per available room fell to $91.17 across New Zealand in 2020, down 40.16% compared to the previous year, according to Tourism Industry Aotearoa.

Figures from the association’s Hotel Data New Zealand (HDNZ), formerly known as the Hotel Data Survey, showed occupancy drop to 50.37% last year, down 36.61% on 2019, and the average daily rate declined 5.6% to $181.01.

Chris Roberts

“Nationally, average hotel occupancy had sat at around 80% since 2016, until the Covid-19 pandemic hit and our borders were closed,” TIA chief executive Chris Roberts said.

“Average occupancy in 2020 barely made it to 50%. The average rate for a hotel room also slipped, and these combined factors resulted in a 40% fall in the average revenue per available room, to just $91.17.

“At those revenue levels, the majority of hotels which remained open in 2020 were operating at a loss.”

TIA said the fall in income was felt across all regions and all hotel categories.

“For example, 3-star hotels saw RevPAR fall from $95 in 2019 to $50 in 2020, while for 5-star hotels RevPAR declined from $214 in 2019 to $123 in 2020,” the association said.

“Regionally, the biggest decline was in Queenstown, where average hotel occupancy fell from 82% in 2019 to 42% in 2020, and RevPAR fell from $207 to $96.”

Source: HDNZ

Auckland was the only region to maintain RevPAR above $100 last year, at $103. That was down 36% on 2019.

Roberts added that hotels were grateful for the support of domestic visitors, as well as business and government guests, however, “many will be relying on at least a partial opening of the borders to be able to return to profitability”.

TIA said its HDNZ figures covered almost three-quarters of all hotel rooms in New Zealand. The figures included hotels providing border isolation services.

 


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