New Zealand hotel occupancy rebounds following August drop - Colliers
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New Zealand hotel occupancy rebounds following August drop - Colliers
Colliers International's New Zealand Hotel Market Snapshot Q3 2020 shows the country's hotel occupancy has recorded an improved third quarter performance following historic lows as a result of the pandemic earlier this year.
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Colliers InternationalNew Zealand's Southern Alps.
The continuation of a self-imposed border control/isolation regime and strong domestic demand will pave the way for the NZ hotel sector over the next six months, according to Colliers International.
The firm's New Zealand Hotel Market Snapshot for the third quarter found occupancy improved in July on the back of the winter school holiday period, with all markets except Christchurch recording occupancy levels above 50 per cent.
According to Colliers, levels then moderated in August (with the exception of Christchurch), primarily as a result of Auckland’s second partial lockdown, before rebounding again in September.
Colliers NZ Hotel Market Snapshot - At a glance:
- Occupancy improved in July on the back of the winter school holiday period, with all markets except Christchurch recording occupancy levels above 50 per cent.
- With the exception of Wellington, all key markets in the country recorded a significant increase in domestic guest nights in Q3 2020 over the same period in 2019.
- Colliers is yet to report any significant downward momentum in room rates, with the YTD September 2020 average rate across all key markets on par with that of 2019, of which Rotorua being the standout performer.
Source: Colliers International
The figures show that, with the exception of Wellington, all key markets in the country recorded a significant increase in domestic guest nights in Q3 2020 over the same period in 2019.
Colliers Hotels National Director for New Zealand Dean Humphries told WILLIAMS MEDIA the demand for New Zealand hotels during the pandemic period had been stronger than first anticipated.
"In the past, the third quarter has been seen as an off-season or shoulder season for the New Zealand market, but domestic demand has been incredibly strong across July and September this year," he said.
Source: Colliers International
"It gives everyone a little bit of hope about the way forward, while also providing some welcome relief for hotel operators."
The report also indicated hotel room rates have shown surprising resilience during 2020, which Colliers attributes to the presence of government contracted business across circa 32 hotels (7,200 rooms) throughout many of the main regions in the country.
Source: Colliers International
Stronger patterns have also been evident during the weekends and school holiday periods.
As such, Colliers is yet to report any significant downward momentum in room rates, with the YTD September 2020 average rate across all key markets on par with that of 2019, of which Rotorua being the standout performer.
The research forecasts any wider opening of New Zealand’s borders to international travellers beyond Australia is unlikely to occur until 2021, at which point "will quickly become the driving force behind a wider recovery of the hotel sector".
Source: Colliers International
Click here to download the report.
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