Main city hotels see a bigger boom in guests
The tourism boom is driving unprecedented growth for hotels, but Queenstown and Auckland continue to get a bigger piece of the pie.
Colliers International’s latest New Zealand Hotel Market Snapshot found Queenstown hotels had occupancy of 90 per cent and earned an average daily rate (ADR) of $240 per occupied room, from the start of the year to March. Queenstown ADR was up 15 per cent compared to the first quarter last year.
Auckland had 91 per cent occupancy and an ADR of $225 per occupied room, an increase of 15 per cent compared to the first quarter last year.
The amount of money hotels raked in on average grew across the regions, though Wellington, Rotorua, and Christchurch had less growth in the price of hotel rooms.
Wellington hotels had an ADR of $177, up 5 per cent from the first quarter last year, Christchurch’s ADR was $170, a less than 1 per cent increase on a year ago, and Rotorua had a $140 ADR, which was up a 8 per cent.
Occupancy rates for the year plateaued in most main centres, with no change in Wellington, and Christchurch down 3.5 per cent
Colliers International national director of hotels Dean Humphries said it’s likely this year would be another recordbreaking one for hotels, especially due to the British and Irish Lions tour in June and July and the recent World Masters Games in Auckland.
Humphries said the 25,000 people who participated in the World Masters Games had driven up occupancy rates in Auckland.
‘‘More than 20,000 fans are expected to visit our shores during the month-long tour, which will create a spike in hotel performance, as last witnessed during the previous Lions tour in 2005 and the Rugby World Cup in 2011.’’
Marriott International is bringing a Four Points by Sheraton hotel to Queen Street in Auckland. The 21-level hotel will have 255 rooms and open later this year.
Humphries said the investor sentiment for these kinds of projects remains strong, based on a recent roadshow to Asia promoting the One Market Square hotel development that would bring 165 rooms to a waterfront site in the heart of the Viaduct Harbour.