ADR Increasing in New Zealand

Data from STR Global show a 15.3% occupancy decrease for hotels in Christchurch, New Zealand, for the first two months of 2011, a decrease that was strongly influenced by a 25.2% drop reported in February. The deadly earthquake hit the city on 22 February 2011.

Though Christchurch has suffered in the aftermath of the earthquake, hoteliers in other major cities throughout New Zealand are pushing rates after posting occupancy and demand increases during 2010.

Nationwide, ADR has improved by 3% to NZ$138 in the first two months of 2011 despite a 2.1% fall in occupancy.

Auckland and Queenstown improved their ADR year-to-February, reporting NZ$141 and NZ$155, respectively. Wellington, despite a continued drop in rate growth, still reported an ADR of NZ$146 and occupancy of 72 %.

With the ongoing clear up in Christchurch and the uncertainly over how many hotels might need to be torn down, performance will of course remain subdued. The city reported an ADR of NZ$114 and occupancy of 70% for the first two months 2011.

However, prospects for the remainder of the country are boosted by the Rugby World Cup, which is set to attract huge travelling support in New Zealand during several weeks in September and October 2011. Plus, significant future marketing benefit is to be expected now that the much delayed filming of The Hobbit, the prequel to the J.R.R. Tolkien's Lord of the Rings trilogy, has begun in Wellington.