A delta outbreak in August has postponed what was the early stages of a recovery during 2021, which saw strong domestic demand and the opening of the trans-Tasman bubble.
Unfortunately, New Zealand went into an Alert Level 4 lockdown with Auckland however remaining at this level for 5 weeks before dropping to Alert Level 3.
With ongoing case numbers (primarily in the Auckland region), the Government has acknowledged an elimination strategy is challenging, now focusing on fully vaccinating 90% of the population above 12 years of age.
With ongoing travel limitations in place and international borders likely to remain closed until at least Q1 2022, this will further impact the performance of many hotel assets across New Zealand.
At this stage, it looks as though the remainder of 2021 will be challenging with any further recovery now delayed until the first quarter of 2022.
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