Hotel rates, revenues rise as rooms fill up
The average daily rate for New Zealand hotel rooms rose $15 last year and occupancy nationally was at its highest level in more than a decade.
According to Tourism Industry Aotearoa (TIA) figures for its 150 hotel members, ranging from three- to five-star establishments, the average daily hotel room rate last year rose 9 per cent to $172 (excluding GST).
TIA chief executive Chris Roberts said the average occupancy was more than 80 per cent last year. ‘‘Adjusted for inflation, hotel rates are now finally back to a level last seen in the late 1990s.
‘‘This reflects the strong international tourism growth over the last two years, and the limited number of new hotels coming onto the market.’’
The combined impact of the higher daily rate and occupancy levels saw revenue available per room grow by 12 per cent to $139.
Roberts said that was important to encourage new investment in hotels to cater for the continued growth in tourism.
Popular tourist areas such as Auckland and Queenstown saw average daily rates rise by $19 (to $183) and $27 (to $194) respectively.
Christchurch went against the trend, with both occupancy and room revenue dropping marginally, while the average daily room rate increased only slightly to $158.
Roberts said the addition of 120 more hotel rooms to the Christchurch market last year had an impact.
International booking website hotels.com has also released its annual price index for all types of accommodation that it lists at New Zealand’s top 20 destinations.
It found average room rates rose 2 per cent last year across the country, with Queenstown and Auckland again experiencing the biggest gains and Christchurch showing a 5 per cent decrease.