Just over 12 months on from the onset of Covid-19 and the first national lockdown, New Zealand’s hotel sector at last has some positive factors to focus on.
A global vaccination programme is well underway, particularly in our key inbound markets, and a bi-lateral travel bubble with Australia will commence on 19 April, providing considerable pent up demand from our largest and most important inbound tourism market.
From a hotel investment perspective, hotel yields continue to remain at historic lows on the back of the low cost of capital and wider yield compression across other asset classes.
Recent sales of the 82 room, 5-star Sofitel Queenstown and 65 room Discovery Lodge Queenstown support firming yields and minimal downward pricing movement from pre-Covid levels for quality strategic assets.
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