Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search


New Zealand Hotels Uniquely Positioned For Recovery - But It Will Be Protracted

New Zealand is in a unique position to set the benchmark for global tourism’s road to recovery – but a new research report also paints a realistic picture of Covid-19’s blow to the hotel sector.

Colliers International’s Covid-19 Impact and Pathway to Recovery report, released today, follows an extensive nationwide survey of hotel operations.

The survey was carried out in early April, after the New Zealand government closed the country’s borders to non-residents on March 20 and implemented Level 4 lockdown restrictions on March 25.

It found 40 per cent of hotels were either closed or placed in temporary ‘hibernation’ while a further 40 per cent remained open with limited inventory and skeleton staff.

Hotel occupancy fell from 80 per cent in the first quarter of 2020 to under 20 per cent in all key markets in April. Room rates also fell by up to 50 per cent.

Dean Humphries, National Director of Hotels at Colliers International, says Covid-19’s impact on the financial performance of the hotel sector is the most significant in New Zealand’s history.

“Covid-19 is having a profound impact on the global tourism and hotel sector and will likely reshape the way our industry operates for many years to come, ultimately redefining the short stay accommodation sector as we know it.

“There is no doubt there will be some causalities in our sector as owners and operators establish whether they can efficiently run their businesses in this new era.

“However, this will also create opportunities for others who can quickly adapt and adopt new strategies.”

Humphries says New Zealand will remain reliant to some degree on how wider global markets emerge from the pandemic.

“While we need to adopt a ’wait and see’ approach until clear trends emerge, we now have time to prepare for the inevitable changes in the marketplace.

“The recovery will initially be domestic-led. Before Covid-19, domestic guests accounted for more than 50 per cent of hotel room night demand throughout the country with the exception of Queenstown at 34 per cent.

“We expect an initial uptick in domestic tourism from May 14, when Level 2 came into play, followed by demand from a trans-Tasman and Pacific bubble that may be established as soon as the third or fourth quarter of this year.

“A possible trans-Tasman and Pacific bubble is likely to be followed by a period of bilateral travel agreements, primarily focused on the South East Asian seaboard including Hong Kong, South Korea, China and Taiwan if these countries showcase that they have contained the virus to manageable levels.

“As a result, New Zealand has a unique opportunity to be an ideal ‘early adopter’ for many tourism-focused initiatives and become a benchmark, and possibly market leader, in the road to recovery for the global tourism sector.”

Humphries says recovery will be gradual but is likely to gain momentum from 2021.

“Another factor in New Zealand’s favour is the early hosting of global sporting and cultural events such as the America’s Cup and APEC, which are both still scheduled for 2021.

“While a path to recovery is emerging, hotel performance is unlikely to fully recover to pre-coronavirus levels for up to five years, in part because of a large number of new hotel rooms currently under construction.

“The majority of New Zealand’s 27 hotel projects under construction will continue, although some will be deferred until the market improves. Most projects will face a delay in completion in the order of three to six months,” says Humphries.

These projects account for close to 4,200 additional rooms with the majority of these projects being located in Auckland and Queenstown.

However, proposed new hotel developments are likely to be halted over the short to medium term.

Chris Bennett, Director of Hotel Valuation and Advisory at Colliers International, says investment yields for prime hotel assets remain largely at pre-Covid levels, albeit we are anticipating some reduction in values due to lower forecast earnings.

“Investors with long-term objectives, who can weather the next 18 months, will likely emerge in a stronger position, having fully re-evaluated their current operating model and positioning themselves for a robust recovery.

“Conversely, those owners who are under-capitalised or unable to sustain some pressure on their balance sheets over the short term may need to divest or restructure their business and/or assets.”

Bennett says it is more important than ever for clients to receive specialist, up-to-date hotel and tourism advice across the breadth of New Zealand.

Colliers International’s Hotels division is the largest dedicated advisory, valuation and brokerage team in New Zealand.

In response to the increased demand for its specialist tourism and hospitality services in a post Covid-19 environment, a number of new appointments and promotions have been made:

  • Jackie Su has been promoted to senior analyst and consultant;
  • Hayden Pham has been appointed a graduate valuer, and;
  • Josh Connolly has been appointed as hotel broker.

Colliers has also farewelled industry stalwart Jack Charters, who is retiring after 30 years of service with Colliers.

In addition to the national Hotels team based in Auckland, Colliers has a number of staff with extensive tourism sector experience within the 14 franchised offices around the country.

These include Barry Robertson and Steve McIsaac in Queenstown, as well as associates in Christchurch, Nelson, Wellington, Hawke’s Bay, Rotorua, New Plymouth and Hamilton.

About Colliers International:

Colliers International Group Inc. is a global leader in commercial real estate services with almost 15,000 professionals operating from 403 offices in68 countries. With an enterprising culture and significant insider ownership, Colliers professionals provide a full range of services to real estate occupiers, owners and investors worldwide. Services include brokerage, global corporate solutions, investment sales and capital markets, project management and workplace solutions, property and asset management, consulting, valuation and appraisal services, and customized research and thought leadership. Colliers International has been ranked among the top 100 outsourcing firms by the International Association of Outsourcing Professionals’Global Outsourcing for 10 consecutive years, more than any other real estate services firm.

Founded in Australia in 1976, Colliers International is the largest locally formed real estate services firm with professionals worldwide. Find out more at

For the latest news from Colliers International, visit: New Zealand – and International – | Follow us on Twitter: New Zealand – @colliersintnz and International – @colliers | Visit us on LinkedIn | Like us on Facebook: New Zealand – @colliersintnz and International – @colliersglobal | Follow us on Instagram: New Zealand - @colliersintnz and International - @colliersinternational

Colliers International NZ Ltd, Licensed REAA 2008

© Scoop Media

Business Headlines | Sci-Tech Headlines


Science Media Centre: Funding For R&D In New Zealand – Expert Reaction

Research, Science and Innovation Minister Dr Megan Woods has today announced $401.3 million funding for research and development through Budget 2020 and the COVID Response and Recovery Fund. The fund includes $150 million for an R&D loan scheme, ... More>>


Maritime NZ: NZ Joins Global Initiative Keeping Ports Open And Freight Moving

New Zealand has joined an international port authorities’ global initiative for safe and efficient movement of goods and shipping during the COVID-19 crisis. World-wide, 56 port authorities have agreed how they will work together facilitating maritime ... More>>


National: National Backs Businesses With $10k JobStart

National will provide a $10,000 cash payment to businesses that hire additional staff as part of our commitment to keeping New Zealanders in jobs, National Party Leader Todd Muller and Finance spokesperson Paul Goldsmith have announced. Our JobStart ... More>>


DIY Law: Government Exempts Some Home Improvements From Costly Consents

Homeowners, builders and DIYers will soon have an easier time making basic home improvements as the Government scraps the need for consents for low-risk building work such as sleep-outs, sheds and carports – allowing the construction sector ... More>>


Media Awards: The New Zealand Herald Named Newspaper Of The Year, Website Of The Year At Voyager Media Awards

The New Zealand Herald has been labelled a “powerhouse news operation” as it claims the two biggest prizes – Newspaper of the Year and Website of the Year – along with many individual awards at the 2020 Voyager Media Awards Website of the ... More>>


ASB Bank: ASB Takes The Lead Again With New Low Home Loan Interest Rate

ASB has moved again to support its customers, cutting a number of home loan rates, including the two-year special rate to a new low of 2.69% p.a. Craig Sims, ASB executive general manager Retail Banking says the reduced rate will be welcome news for many ... More>>


Nathan Hoturoa Gray: The Problems With Testing And Case Statistics For Covid-19

To begin to understand disease transmission in a country requires adequate testing of your population with properly vetted, accurate tests. As the world struggles to find what 'adequate percentage' of the population is necessary, (estimates predict ... More>>


RNZ: Fletcher Building To Lay Off 1000 Staff In New Zealand

The construction company will cut around 10 percent of its workforce as it struggles with the fallout from Covid-19. More>>


Can Pay, Won't Pay: Cashflow Moves Urged

Government Ministers are asking significant private enterprises to adopt prompt payment practices in line with the state sector, as a way to improve cashflow for small businesses. More>>


Gordon Campbell: On Why We Should Legally Protect The Right To Work From Home

For understandable reasons, the media messaging around Level Two has been all about “freedom” and “celebration”, but this is not necessarily going to be a universal experience. When it comes to workplace relations, Level Two is just as likely to ... More>>


New Zealand Government: Supporting Kiwi Businesses To Resolve Rent Disputes

The Government will legislate to ensure businesses that suffered as a result of the COVID-19 response will get help to resolve disputes over commercial rent issues, Justice Minister Andrew Little announced today. More>>


Science Media Centre: Understanding 5G Concerns – Expert Q&A

Recent attacks on cell phone towers have brought concerns over the rollout of 5G technology into sharp relief.
While scientific research has consistently shown that the technology does not adversely affect human health, public concerns about its impact have spread around the world, fueled in part by growing misinformation online. The SMC asked experts to comment... More>>


Trade: Record Monthly Surplus As Imports Dive

Imports in April 2020 had their biggest fall since October 2009, resulting in a monthly trade surplus of $1.3 billion, Stats NZ said today. “This is the largest monthly trade surplus on record and the annual goods trade deficit is the lowest ... More>>


Media Blues: Stuff Chief Executive Buys Company For $1

Stuff chief executive Sinead Boucher has purchased Stuff from its Australian owners Nine Entertainment for $1.
The chief executive was returning the company to New Zealand ownership, with the sale is expected to be completed by 31 May.
"Our plan is to transition the ownership of Stuff to give staff a direct stake in the business as shareholders," Boucher said in a statement.... More>>


RNZ: Bar Reopening Night 'much, Much Quieter'

Pubs and bars are reporting a sluggish first day back after the lockdown, with the fear of going out, or perhaps the joy of staying home, thought to be a reason for the low numbers. More>>


Stats NZ: New Zealand’s Population Passes 5 Million

New Zealand's resident population provisionally reached 5 million in March 2020, Stats NZ said today. More>>

NIWA: Seven Weeks Of Clearing The Air Provides Huge Benefits: Scientist

Seven weeks of lockdown has provided evidence of how pollution can vanish overnight with benefits for the environment and individuals, says NIWA air quality scientist Dr Ian Longley. Dr Longley has been monitoring air quality in Auckland, Wellington ... More>>


Government: Milestone In Cash Flow Support To SMEs

A significant package of tax reforms will be pushed through all stages in Parliament today to throw a cash flow lifeline to small businesses. More>>