Queenstown ADR hits monthly record as NZ hotels see good summer – Horwath HTL

25th February 2025 By Paul Yandall | paul@propertyticker.co.nz | @propertyticker

Queenstown’s hotels hit a record average daily rate of $397 in January 2024, up 16.3% on the same month last year, according to Horwath HTL.

The consultancy’s latest New Zealand Hotel Performance Focus for December 2024 and January 2025 showed the sector enjoyed modest but encouraging growth over the two months.

“Queenstown led the way with a 17.2% increase in RevPAR, driven primarily by a 14.4% rise in Average Daily Rate (ADR),” stated the report, which analyses Hotel Data New Zealand (HDNZ) figures.

“Occupancy rates in Queenstown reached 82%, reflecting robust demand, and ADR hit a record high of $397 in January, a 16.3% increase over January 2024. 4.5-5 star properties reported record ADR of $511.87 for January.”

However, Horwath HTL said the increased rates were “likely to pose some challenges for many owners and operators in maintaining guest satisfaction while continuing to deliver value”. 

“Key source markets were Australia, the USA and China, all of which showed strong demand growth.”

Christchurch also saw strong summer demand.

“Room nights sold in Christchurch rose by an impressive 15.4% year-on-year, giving the city the highest average occupancy rate among major markets at 83%,” Horwath HTL said.

“A key driver of this performance was a surge in international visitor arrivals at Christchurch Airport which, according to Stats NZ, saw non-New Zealand resident arrivals increase by 25% compared to the same period last year, boosting its market share from 12.4% to 14.2%.

“In contrast, Auckland Airport recorded a 6% rise in international border crossings.”

Looking ahead, the consultancy said challenges persisted for the industry, with the full recovery of international visitor arrivals now expected by 2027. 

“For Auckland hotels, the New Zealand International Convention Centre opening has been delayed once again to [February] 2026. 

“Meanwhile, economic growth and government-related demand will shape domestic-focused markets such as Wellington, Dunedin, and the Central North Island, while many potential domestic leisure travellers will be looking for lower airfares to fit their budgets.”

Horwath HTL’s latest New Zealand Hotel Performance Focus can be read here.