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Hotels reporting strong business post RWC

Hotels reporting strong business post RWC

New Zealand Hotel Council

Hoteliers in Wellington and Auckland are reporting an abrupt return to ‘business as usual’ with many confident of a very good month, particularly from the corporate and conference markets, says Rachael Shadbolt, New Zealand Hotel Council Executive Officer.

“This is quite unusual for Wellington in an election month, when corporate and government business normally softens.”

“During the RWC the traditional September and October business turned off significantly, with many hotels feeling the effect of no conference business and very little corporate. However this was expected as the business displacement effect of a major event isn’t unusual.” she says. “Many hotels also reported excellent pre RWC business in August as corporate and conference business was squeezed in prior to the tournament.”

“Rugby World Cup produced mixed results for hotels throughout New Zealand. Auckland benefitted the most from the event with strong room rates throughout September and October. But the strong results for Auckland did not carry through the country, with most regions reporting October occupancy levels well below normal levels for the month. Fortunately strong average daily room rates did see very good room revenue growth with increases reported across most NZHC regions,” she says.

“There were also significant peaks and troughs in business during the tournament with RWC visitors generally arriving one day prior to a game and leaving soon after. In between games (or mid week) hotels pitched their rates at business as usual rates. However, the usual guests that fill the hotels mid-week in September and October did not eventuate and this had a significant impact on food and beverage revenues. RWC visitors wanted to be out and about enjoying the fantastic hospitality that New Zealand had turned on for them, not eating at their hotels,” she says.

“Everyone agrees that the RWC was a fantastic event and hotels certainly enjoyed the business it brought to their regions. However it is unlikely that the event will have exceeded budgeted expectations as essentially it pushed traditional September and October business out to August and November,” Ms Shadbolt says.

By the numbers:

• August 2011 - The predicted last minute surge in corporate and C&I business prior to the RWC came to fruition in August with 5 out of the 8 NZHC regions reporting increases in occupancy and RevPar*. Total NZHC national occupancy for August 2011 was up 7.9 points from 66.1% (August 2010) to 74%. Total NZHC national Average Daily Rate* (ADR) was up $9.41 to $136.03 compared with $126.62 in August 2010. RevPar was also up $16.98 to $100.62 compared with $83.64 last year.

• September 2011 saw the start of RWC 2011 and the steady arrival of RWC visitors throughout the month. This also resulted in a drop off in normal corporate and C&I business. Total NZHC national occupancy was down 1.9 points from 68.5% (September 2010) to 66.6%. Auckland and Wellington maintained occupancy at similar levels to previous Septembers; however all other regions experienced occupancy decreases. Average Daily Rate (ADR) for the country was up $76.11 to $200.46 compared with $124.35 in September 2010. RevPar was also up $48.42 to $133.54 compared with $85.12 last year.

• In October the event moved from pool phase to play-off phase and also saw the focus move up the country into the North Island. Total NZHC national occupancy was down 2.4 points from 71% (October 2010) to 68.6%. Auckland enjoyed a strong occupancy increase of 5.7 points up from 75.5% last year to 81.2% and very strong average daily rate growth up from $134.16 last October to $303.02.


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