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New Zealand Hotel Market Snapshot

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NZ Hotel Market Snapshot January 2022

January 2022

With the Covid-19 pandemic continuing to impact tourism across the globe, 2021 brought its share of challenges to the New Zealand hotel sector.

With international borders remaining largely closed, the sector continued to rely on domestic demand and Government backed MIQ contracts for a second consecutive year, enjoying a relatively buoyant trading period over H1 2021, further underpinned by a quarantine-free bilateral travel arrangement with Australia.

However, the outbreak of the Delta variant saw the trans-Tasman bubble quickly suspended, with New Zealand subject to another nationwide lockdown. This dampened demand for the latter part of H2 2021 with restrictions eventually lifted as the nation achieved its 90% vaccination target in mid December.

We have since witnessed a robust domestic recovery over the 2021/22 Christmas holiday period, although the Omicron variant again looks set to reduce demand over Q1 02022.  The Government has recently announced our international borders will reopen in a staged manner from July, with a wider recovery anticipated to commence from this point.

Despite the impact of the pandemic, New Zealand recorded the highest level of hotel transactions on record in 2021 with in excess of $400 million of hotel deals settled, representing a staggering 33 per cent increase on the previous highs of 2010 and 2015.


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New Zealand Hotel Market Snapshot

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Related Experts

Dean Humphries

National Director | Hotels

Auckland CBD

Dean is a highly respected hotel investment advisor specialising in the disposal, acquisition and valuation of hospitality and tourism assets.  Dean provides advice to many institutional and tourism related entities including those noted in the client info tab.

Dean is also actively involved in a range of work in the wider South Pacific basin including; Fiji, Tonga & Samoa.

Dean joined Colliers International in May 2013 as National Director, Hotels for New Zealand and the South Pacific.

Prior to that Dean was Executive Vice President of Jones Lang LaSalle Hotels & Hospitality Group New Zealand & Queensland with over 25 years’ experience in the wider property industry.

He has also been actively involved in the wider property industry, holding a senior lecturing position at the University of Auckland between 1999 and 2011.

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