Horwath HTL's latest report suggests with the high (summer) season approaching, it won’t be too long before reports about the high hotel room rates and a shortage of hotel rooms in Auckland.

"This is likely to lead to the familiar calls for more hotels and acceleration of projects in the planning," the report states.

"Amidst such sentiment, it is easily overlooked that there is a significant risk of a period of strong occupancy decline unless we see a dramatic stimulus in off-season demand or some developers reconsider their planned projects."

"For the eight months to August, RevPAR for the major Auckland hotels declined by 4% compared to the same period last year."

"Key contributing factors to this downturn were the absence of major events like last year’s British & Irish Lions rugby tour and the opening of more than 600 hotel rooms, increasing supply by approximately 9% over the period."

"Hotel occupancy rates of 82.6% for this eight month period may be considered high but are the lowest since 2014."

"Based on the number of new hotel projects under construction, announced or being considered, annual hotel occupancy levels could slip much further."

"We have identified 41 hotel projects in various stages that are planned to open over the next five years with a total of 6,500 rooms. If all these projects proceed, this will represent an increase of approximately 89% of the current major hotel supply in Auckland."

"Twelve projects are currently under construction, totalling 1,800 rooms, increasing major hotel room supply by approximately 24%."

"Three projects are already well advanced with construction expected to commence soon and will increase supply growth to 31%. A further 26 projects have been announced or are under consideration."

"If we assume that only those projects which have been announced will proceed, supply is expected to increase by “only” 24 hotels, or 3,900 rooms over the next five years. Such an increase of just over 50% of existing major hotel supply would trouble most hotel investors in any city."

"It is reassuring that the past years have shown there is considerable demand growth potential during the summer season, including an opportunity to regain market share lost to other regions and to alternative accommodation providers."

Click here to view and download the full research report published by Horwath HTL.

Reportedly Under construction in Auckland now is:

• 130-room So Sofitel
• 152-room Sebel Auckland Manukau
• 255-room Four Points by Sheraton
• 195-room Park Hyatt
• 300-room SkyCity Horizon Hotel
• 104-room Britomart Hotel

Auckland's reported proposed hotels included:

• 250-room Pullman Auckland Airport
• 250-room Cordis Auckland extension
• 500-room Holiday Inn Express/EVEN
• 310-room Novotel Auckland City
• 225-room Indigo Auckland
• 194-room Sudima Auckland City
• 160-room 4 Viaduct Harbour hotel

In addition to these hotels, it is reported a further 26 projects are announced or under considersation.

See also:

Sebel Auckland Manukau Hotel opens its doors

It's never been a better time to enter a tourism career in New Zealand

Auckland International Airport continues to see tourism growth