Auckland’s hotel sector experienced a welcome surge during the summer season, primarily driven by two major events.
Auckland hotels gained over $5 million in room revenue, supported by major events from January 16 to 19, such as SailGP and two sold-out Luke Combs concerts at Eden Park.
“An additional 8000 rooms in Auckland hotels were sold over the four days, over and above usual occupancy rates for the same time of year,” CBRE director of hotels and leisure Peter Hamilton said.
According to Hamilton, the “short and sharp” impact of major events provides a much-needed boost to Auckland’s economy at a time when growth in visitor numbers is declining due to the global economic downturn.
“This provided a substantial revenue boost for the Auckland hotel sector, which has had a large room supply increase in recent years and has been struggling with reduced demand outside peak periods.”
“Major events are essential for stimulating Auckland’s economy at a time when growth in visitor numbers is struggling to recover during the global economic downturn.”
”Increased local and central government investment into a solid forward schedule of citywide events has immense potential benefit for hotels, hospitality businesses, retailers, transport operators, and tourism providers,” he added.
Hotel Room Demand and Rates Decline
Since April 2024, Auckland’s hotel room demand has decreased, causing average room rates to fall for the first time since the 2022 border reopening. This downturn is due to a decline in international visitors and difficult economic circumstances.
Increased competition also affects hotels, as the CBD room supply is 22% greater than it was in 2018 and is expected to increase an additional 5% in the next two to three years.
According to CBRE research, hotel room supply across New Zealand in 2024 was 21% higher than in 2019, while room demand remained 2% lower than 2019 levels.
“With the additional room supply in the Auckland market, it’s a pivotal time for businesses, council agencies, and central government to work together to attract more events to boost demand,” Hamilton noted.
He also stressed that the New Zealand International Convention Centre’s opening in February 2026 will be beneficial, “but we also need a broader base of regular high-profile events to fill the gap.”
This year, New Zealand will host concerts by Chris Stapleton on March 7, Dua Lipa, as part of her “Radical Optimism” tour on April 2, 2025, and Tyler, The Creator on August 18, 2025. The country will also feature several All Blacks test matches, Black Caps and White Ferns games, and regular local sports tournaments.