Horwath HTL Report – New Zealand Hotel Performance Focus May 2025

May 2025 brought another month of mixed results for New Zealand’s hotel sector, with nationwide performance reflecting both ongoing challenges and areas of positive momentum. According to data from Hotel Data New Zealand (HDNZ), hotels nationwide recorded a 4.2% year-on-year decline in Revenue per Available Room (RevPAR) in May, driven by a 1.5% drop in occupancy and a 1.8% decrease in the average daily rate (ADR). 

This overall softness was again most evident in Auckland and Wellington, which continue to weigh on the national average. Nevertheless, despite Queenstown’s continued growth, the combined performance of all other markets remained negative across all key metrics.

International visitor arrivals offered a notable highlight, with border crossings by non-New Zealand residents in May up 5% year on year, reaching 89% of pre-pandemic May 2019 levels. The ongoing recovery from the People’s Republic of China (including Hong Kong) was particularly significant, with arrivals increasing 31% year on year. 

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