TIA hotel insight

2015 was an exceptional year for New Zealand hotels which collectively recorded their best results in five years, according to TIA insight.

National results

TIA has almost 140 member hotels which enjoyed an average 78.8% occupancy in 2015, up 3.1 points on 2014, TIA Hotel Sector Manager Sally Attfield says. This was the highest occupancy rate in five years.

The average daily rate (across all star grades) rose to $157, up $12 on the previous year, and also a five year high. This generated total revenue of $1.17 billion, up from $1.05 billion in 2014.

The strong performance is a result of improvements in the New Zealand economy and an increase in international visitor arrivals. New Zealand welcomed more than 3.1 million visitors in 2015 – 9.6% more than in 2014.

The results were boosted by strong events calendars around the country.

Every region saw record results last year. Summer 2015/16 and the months of March, April and May 2016 have provided further increases in both occupancy and average rates.

"The increased revenue performances are allowing for reinvestment in both properties and people. We are also seeing investors responding to demand with more hotel developments around the country than we have seen for quite some time,” says Ms Attfield.

The hotel sector is contributing strongly to the Tourism 2025 goal of growing total annual tourism revenue to $41 billion.

National highlights from TIA’s Hotels Annual Operating Survey 2015:

The national annual occupancy rate was 78.8%, up 3.1 points on 2014, and the highest in the last five years. Auckland achieved the highest annual occupancy rate of 84%, followed by Queenstown (78.6%) and Wellington (77.9%).
The national average daily rate across all star grades was $157, up $12 on 2014, and the highest daily rate in the last five years. Queenstown has the highest average daily rate of $166 followed by Auckland and the Central Park region (Taupo, Tongariro, Napier and Gisborne) on $164.
Total room capacity was static at 17,900, with increases in Christchurch offset by the temporary closure of an Auckland property for refurbishment.
TIA hotel members generated $1.17 billion in revenue, up from $1.05 billion in 2014. They contributed $815 million (up $41 million) to the economy through wages and salaries (over $360 million), food and beverage purchases, council rates (over $19 million) and other expenditure.
TIA hotels employ 10,800 staff nationally, up from 10,500 in 2014.

Auckland region

Auckland hotels collectively recorded the highest annual occupancy rate in New Zealand.
TIA’s 37 member hotels in Auckland enjoyed 84% occupancy, up 1.8 points on 2014 and well above the national occupancy rate of 78.8%. This was the city’s highest occupancy rate in five years.
The average daily rate (across all star grades) jumped to $164, up $17 (11%) on the previous year, generating total revenue of $522 million, up $66 million on 2014.
Auckland’s results were boosted by a strong events calendar particularly in the summer months, including the ICC Cricket World Cup, and a number of concerts and sporting events. Meetings, incentives, conferences and events provided strong support in the shoulder and winter months.

TIA Hotels 2015 Annual Operating Survey shows that Auckland’s 37 TIA Hotel members:

Offered 6757 rooms (a slight decrease on 2014 as a result of the closure for refurbishment of the Copthorne Harbour City)
Employed 4300 people
Contributed $363 million (up $28 million) to the region through wages and salaries ($161 million), food and beverage purchases, council rates ($8.4 million) and other expenditure
Recorded growth in the China, New Zealand and UK markets but a decline in Australian visitor numbers
Experienced a small decline in the corporate travel market, based on market share percentages, offset by an increase in independent leisure travellers and tours.

Central Park region

Central Park (Gisborne, Napier, Taupo, Tongariro) hotels collectively recorded the third highest average daily rate in New Zealand.
TIA’s seven member hotels in Central Park recorded an average daily rate (across all star grades) of $164, up $4 on 2014 and generating total revenue of $39 million.
The hotels had 58.6% occupancy, up 2.7 points on 2014. Although this was below the average national occupancy rate, it was the highest recorded in the Central Park region for the last five years.
Central Park’s results were boosted by a strong summer events calendar, including the ICC Cricket World Cup, concerts, the Wanderlust festival, the Art Deco Weekend and Horse of the Year. The Dual World Heritage site, Tongariro National Park including the Tongariro Alpine Crossing, was a driver of visitors to the region during the summer months.

TIA Hotels 2015 Annual Operating Survey shows that Central Park’s seven TIA Hotel members:

Offered 662 rooms (no change from 2014)
Employed 429 people (up from 380)
Contributed $30 million (up $5 million) to the region through wages and salaries (nearly $14 million, up $3 million), food and beverage purchases, council rates (over $500,000) and other expenditure
Recorded growth in the US and UK markets but a decline in New Zealand and Australian visitor numbers. A pleasing component of this was the slight increase in the length of stay by international visitors during the summer months
Experienced a small decline in the conference and incentive market, based on market share percentages, offset by growth in tour groups. The wedding market also saw some improvement.

Rotorua region

Rotorua hotels which collectively recorded their best occupancy level in five years.
Occupancy in TIA’s 11 member hotels in Rotorua was 76.7%, up 5.6 points compared to 2014. Of all TIA Hotel Regions, Rotorua recorded the highest occupancy growth increase in 2015.
Although this was below the average national occupancy rate, it was the highest recorded in Rotorua for the last five years and shows an 11 point growth over this five year period.
The average daily rate (across all star grades) was $110, up $10 (10%) on 2014, generating total revenue of $70 million (up $10 million).
Rotorua’s results were supported by events including the Rotorua Marathon, National Sevens, national conferences, TRENZ 2015, the inaugural Crankworx Rotorua mountain bike event and the filming of a movie, Pete’s Dragon.
Rotorua also continued to be an attractive location for New Zealanders in the school holiday periods. Chinese New Year saw increased visitation to the region from the China market in what is already a busy time of the year.

TIA Hotels 2015 Annual Operating Survey shows that Rotorua’s 11 TIA Hotel members:

Offered 1482 rooms (up 36 rooms from 2014)
Employed 882 people (up over 150 people from 2014)
Contributed nearly $50 million (up $6 million on 2014) to the region through wages and salaries ($21 million), food and beverage purchases, council rates (over $1 million) and other expenditure
Recorded growth in the Australian, Japanese and China markets (the latter is up 7 points) but declines in visitor numbers from New Zealand, South Korea and Japan. All other markets were steady.
Experienced a small decline in the corporate travel market and a 5 point drop in independent leisure travellers, based on market share percentages, offset by an increase in tours and groups.

Wellington region

Wellington hotels collectively recorded the third highest annual occupancy rate in New Zealand.
TIA’s 22 member hotels in Wellington enjoyed 77.9% occupancy, up 3.3 points on 2014. This was the third highest of all TIA Hotel regions and the city’s best result in five years.
The average daily rate (across all star grades) jumped to $157, up $9 on 2014, and the best in the last five years.
Wellington’s results were boosted by a strong events calendar, including the ICC Cricket World Cup, World of WearableArt season, strong performances by the Hurricanes Super Rugby side including the final, the FIFA U20 tournament and various concerts.
Wellington also benefited from the Anzac 100 year commemorations which included the opening of two four-year exhibitions – Gallipoli: The Scale of Our War at Te Papa and The Great War exhibition in the Dominion Museum building. These exhibitions contributed to an increase in New Zealanders visiting Wellington in 2015.

TIA Hotels 2015 Annual Operating Survey shows that Wellington’s 22 TIA Hotel members:

Offered 2925 rooms (no change from 2014)
Employed 1530 people (up 80 on 2014)
Contributed $127 million to the region through wages and salaries (over $53 million), food and beverage purchases, council rates (over $4.5 million) and other expenditure (up $6 million on 2014)
Generated total revenue of $184 million (up $17 million on 2014).
Recorded growth in the New Zealand and US visitor numbers, but a decline in the Australia market.
Experienced growth in the tours and group travel market, based on market share percentages, offset by a decline in conference and incentives.

Nelson/Marlborough region

2015 was a mixed year for Nelson/Marlborough hotels.
The average daily rate (across all star grades) in TIA’s 8 member hotels in Nelson/Marlborough was $148, up $8 on 2014 and generating total revenue of over $22 million.
However, occupancy was 61.7%, a decrease of 1.4 points on 2014.
Overall the region’s results were mixed, and while ahead of 2014, Nelson/Marlborough did not experience the same level of growth as other TIA Hotel regions.
The summer results were very positive, but business at the region’s hotels slowed during the winter. The cyclic nature of some association conferences moving between the North and South Islands also meant that some 2014 conference business was not repeated in 2015.
However, Nelson/Marlborough’s results were boosted by numerous events in the region, including the ICC Cricket World Cup in Nelson and the Classic Fighters Omaka Airshow.

TIA Hotels 2015 Annual Operating Survey shows that Nelson/Marlborough’s eight TIA Hotel members:

Offered 430 rooms
Employed nearly 400 people
Contributed $19 million to the region through wages and salaries (almost $9 million), food and beverage purchases, council rates (nearly $150,000) and other expenditure
Recorded growth in the New Zealand, China and German markets but declines in Australian, US and UK visitor numbers
Experienced strong support from the corporate travel market and independent leisure travellers, based on market share percentages, with growth from the tour and group market offset by a small decline in conference and incentive business.

Christchurch region

The boom in tourism over the last year is supporting Christchurch hotels’ post-quake recovery.
TIA’s 17 member hotels in Christchurch saw occupancy increase to 76.8%, up 3.8 points on 2014. This increase brought occupancy back to 2013 levels, despite a number of hotels opening or reopening in the city during 2015.
The significant recovery in the supply of available rooms has affected the occupancy statistics in Christchurch. TIA hotels in the city now have 1900 rooms available, up 300 on 2014. Hotel openings during 2015 included Breakfree on Cashel, and Ramada Hotel and Suites Christchurch, and it was the first full year of operation for Hotel Montreal. The Sudima Christchurch Airport also added additional rooms in 2015.
The average daily rate (across all star grades) was $156, down $1 on the previous year. This saw Christchurch hotels generate total revenue of $117 million, up $15 million on 2014.
Christchurch’s results were boosted by the ICC Cricket World Cup, concerts, the NZ Ladies Golf Open, Te Matatini National Kapa Haka Festival and an All Blacks test.
TIA Christchurch hotels employed 1350 people, an increase of more than 300 on the previous year.

TIA Hotels 2015 Annual Operating Survey shows that Christchurch’s 17 TIA Hotel members:

Offered 1940 rooms, up over 300 on 2014
Employed 1350 people, an increase of more than 300 on 2014
Contributed $85 million to the region (up $11 million on 2014) through wages and salaries (over $39 million), food and beverage purchases, council rates (over $1.4 million) and other expenditure
Recorded growth in the Australian market but a reduction in New Zealand, US and UK visitor numbers
Experienced a decline in the corporate travel market, based on market share percentages, offset by increases in the tours and independent leisure travel sectors.

Queenstown region

2015 was an exceptional year for Queenstown’s hotels which collectively recorded their highest annual occupancy and average daily rates in five years.
TIA’s 22 member hotels in Queenstown enjoyed 78.6% occupancy, up 5.2 points on 2014 - the resort’s highest occupancy rate in five years.
Queenstown was second only to Auckland (84%) in occupancy statistics among the TIA Hotel Regions.
This is an excellent result for Queenstown but it also shows there is still room to accommodate more visitors through much of the year. For instance, May occupancy rates for the resort were under 70%.
The average daily rate (across all star grades) for 2015 jumped to $166, up $17 on the previous year, and the highest in the country with Auckland and the Central Park region (Taupo, Tongariro, Napier and Gisborne) following at $164.
The Queenstown hotels generated total revenue of $179 million, up $11 million on 2014.
Queenstown’s results were boosted by events including the New Zealand Golf Open, American Express Queenstown Winter Festival and the Air New Zealand Queenstown International Marathon, as well as a number of conferences.

TIA Hotels 2015 Annual Operating Survey shows that Queenstown’s 22 TIA Hotel members:

Offered 2840 rooms
Employed 1500 people
Contributed $114 million to the region through wages and salaries ($51 million), food and beverage purchases, council rates (more than $2 million) and other expenditure
Recorded growth in the China, Japan and US markets with all other key markets remaining steady.
Experienced growth in the corporate market, based on market share percentages, offset by a small decrease in the convention and incentive market.

Dunedin

2015 was an exceptional year for Dunedin hotels which collectively recorded their best results in five years.
TIA’s eight member hotels in Dunedin enjoyed 75.3% occupancy, up 1.7 points on 2014. This was the city’s highest occupancy rate in five years.
The average daily rate (across all star grades) rose to $133, up $8 on the previous year, and also a five year high. This generated total revenue of $27 million.
Dunedin’s results were boosted by a strong events calendar, ICC Cricket World Cup, an All Blacks test match, FIFA U-20 tournament, a high performing Highlanders franchise and concerts, combined with Graduations and Black Caps matches at the beginning and end of the year.

TIA Hotels 2015 Annual Operating Survey shows that Dunedin’s eight TIA Hotel members:

Offered 535 rooms
Employed more than 250 people
Contributed $17 million to the region through wages and salaries (nearly $8 million), food and beverage purchases, council rates (almost $500,000) and other expenditure
Recorded growth in the China and US but a decline in New Zealand and Australia visitor numbers
Experienced an increase in tours and groups, based on market share percentages, but a decline in the independent leisure traveller market.

Insight