March 2022 showed the worst hotel occupancy rates since the start of the pandemic March 2022 showed the worst hotel occupancy rates since the start of the pandemic

NZ hotel recovery stutters

The Omicron outbreak and related restrictions continue to stall any meaningful recovery of hotel performance in New Zealand. Last month’s Revenue Per Available Room (RevPAR) was 28% of its pre-pandemic level in March 2019, according to Hotel Data NZ (HDNZ).

Occupancy levels varied from a low of 22% in Queenstown to a “high” of 54% in the Nelson/Marlborough region, averaging 33% across the country’s main hotel markets.

These results, which exclude hotels designated as MIQ facilities, are the worst March results since the outbreak of the pandemic in all but one of the regions.

At 36%, Wellington recorded its lowest occupancy since the lockdown in September 2021, despite the end of the three-week protests at Parliament on2 March.

A strong hesitancy to travel in the business, government and leisure markets exacerbated the continuing lack of international visitors.

Self-imposed restrictions by businesses and government departments, combined with the red alert level and capacity restrictions impacting meetings and events, continue to cause a reluctance to travel amongst many New Zealanders, especially those who are most likely to use hotels.

Related items

ProMag