Horwath HTL

Decent spring snow, the FIFA Women’s World Cup, and the growing business events sector combined to give New Zealand’s hotels a lift in August 2023, according to Horwath HTL.

The FIFA Women’s World Cup has given the country’s major hotels a mid-winter lift with revenue per available room exceeding pre-Covid levels, according to Horwath HTL.

Horwath HTL also notes that RevPAR over H1 2023 has surpassed pre-Covid, driven by strong ADR.

And the highly anticipated FIFA Women’s World Cup is yet to turn into significant bookings for operators.

Average daily rates across the country were up significantly in April compared to the same month in 2019, according to Horwath HTL.

Occupancy in most of NZ’s key markets is down on pre-Covid but supply has grown significantly since then.

Hotel profitability remains under pressure despite the return of international visitors, according to Horwath HTL.

However, occupancy remained well below 2019 levels due to the addition of around 4,200 rooms.

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.