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Operators are being forced to cap room supply while demand and cost pressures rise.
Staffing challenges could create reputational damage if summer demand is not satisfied, warns the consultancy.
Room nights sold in five out of eight key markets returned to pre-Covid levels in August.
ADR jumps as guests fork out to secure scarce rooms in Queenstown and Te Pae helps boost demand in Christchurch.
Average daily rates jumped in June with little resistance from consumers, says the consultancy.
NZ’s hotel sector is on the move with the lifting of border and Covid restrictions helping to drive performance.