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Horwath HTL Report – New Zealand Hotel Performance Focus June 2025 – Image Credit Unsplash+
The New Zealand hotel sector faced a challenging June, with market performance reflecting ongoing pressures in both domestic and international demand. RevPAR (Revenue per Available Room) across the country declined by 5.4% compared to June of the previous year, driven by a combination of supply increase (2%), fewer room nights sold (-1%) and a decline in average daily rate (-3%).
The national occupancy rate averaged 56%, with regional variation ranging from a low of 50% in the Nelson Marlborough area to a peak of 59% in Christchurch. In the five major markets: Auckland, Wellington, Queenstown, Christchurch, and Rotorua RevPAR fell by an average of 5.7% year on year.
Christchurch and Rotorua were notable exceptions, each reporting an uplift in RevPAR. For the first half of 2025, the national picture was one of stagnation, with no overall growth in RevPAR compared to the same period last year. This plateau is the result of sluggish international visitor recovery and persistent softness in domestic demand amidst relatively minor supply increases.
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