Hotel industry sees 'surprisingly strong rebound' since lockdown lifted

New Zealand's hotel industry has seen a "surprisingly strong rebound" since lockdown restrictions were lifted according to a new report.

Naumi Hotel. Source: Google Maps

The latest stats on the industry were released this week in Colliers International’s Q2 2020 New Zealand Hotel Market Snapshot.

The report details the impact Covid-19 has had on the sector.

"The New Zealand hotel sector has experienced a challenging second quarter, due to a full nationwide lockdown through much of April and May," it states.

"This has resulted in hotel occupancy falling to below 20 per cent across all key regions in April, with room rates also falling by up to 50 per cent.

"However, since all domestic travel restrictions were lifted in early June, hotel performance has shown a surprisingly strong rebound."

The 14-day mandatory isolation in hotels for returning Kiwis has been a big driving factor of the rebound.

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The reporter thought she’d try and ask people in one such hotel what they think about the idea. Source: Seven Sharp

The Colliers report estimates that, "as at early July 2020, close to 40 per cent of Auckland hotel rooms are being utilised for mandatory isolation, followed by Christchurch (31 per cent), Rotorua (20 per cent) and Wellington (3 per cent)."

It also features a list of other factors helping hotel occupancy:

• An increase in domestic leisure guests over weekend and school holiday periods.

• Special visa entries for international guests, including the Avatar II production crew and America’s Cup syndicates.

• Early recovery of the corporate and MICE (meetings, incentives, conferences and exhibitions) segments.

Colliers says the July school holidays have provided a welcome reprieve to many hotel owners particularly in regions close to major metropolitan areas.