Hotel room rates have fallen in many parts of the country during the past year. Average daily room rates have dipped from $209 to $202 in the past 12 months with Auckland hoteliers hardest hit. Room rates in the city have fallen from $212 to $195, according to figures in a Horwath HTL report for April and May.
Auckland hotels also experienced a 2.1% drop in occupancy due to increased supply. Based on reported occupancies, which represent approximately 73% of all Auckland hotel rooms, the firm calculated the number of rooms sold in Auckland had increased by around 3% compared with the same period last year.
Compared with 2019, the number of rooms sold in Auckland hotels has risen by approximately 7%. The supply increases in Auckland over past years caused a ‘‘significant’' average daily room rate (ADR) decline of 7.9% due to heightened competition and fewer high-occupancy nights, which typically drive peak pricing.
Central city hotels face additional challenges, including ongoing construction, safety concerns, a weak retail environment, lack of major events, economic pressures reducing consumer spending, and fewer office workers, Howarth HTL said. Wellington hotels continue to be affected by government spending cuts, particularly around contractors and consultants. ADR has declined year-on-year for the past eight months, down from $202 to $191.
The opening of the Tākina Conference and Exhibition Centre helped nearby hotels but has not greatly boosted the overall market.
