Queenstown is the star performer of a resurgent New Zealand hotel market that is, ironically, reaping the benefits from years of under-investment, a trend that shows no sign of changing with barely any new stock coming on in the major markets over the next few years.
Indeed the past year has been spectacular for Queenstown hoteliers, who have been able to push rate thanks to strong year-round demand with revenue per available room increasing 23.1% in the 12 months to June 30, according to STR Global research.
Matt Burke from STR says Queenstown’s accommodation market has now enjoyed 31 months of consecutive RevPAR growth.
“There’s been no new supply since April 2012 while demand since then has averaged 9.2% growth each year,” he says.
Excellent financial results too for Wellington hotels, where RevPAR rose 13.2%, and Auckland properties, which achieved 12.7% growth.
The only exception was Christchurch where RevPAR fell -7.9% due to several new hotels opening in a city still rebuilding after the devastating 2011 earthquake.
Mr Burke says despite the sharp New Zealand growth, its rates still lag the major Australian markets, as the performance table below for the for the year to June 30 shows.
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