New Zealand Hotel Development Pipeline

July 2018

New Zealand is in its 6th consecutive year of a tourism boom which began in 2013 and with limited new hotel supply delivered over this period; it is not surprising that the hotel sector has finally entered a strong development phase.

It is hard to believe we have seen virtually no net addition to the NZ hotel inventory  in the past five years, despite almost 1.5 million additional tourists visiting New Zealand. In our gateway city of Auckland for example, we have seen a net addition of 526 rooms added to the hotel stock since 2013. 

According to the most recent update of the Colliers New Zealand hotel database(1), there are 2,600 new hotel rooms (22 projects) across our five key markets currently under construction with a further 6,600 rooms across circa 35 projects now proposed or mooted.

Auckland remains the main beneficiary of the current development phase accounting for almost half of all new hotel rooms under construction throughout the country. The completion of the NZICC in late 2019 and the America’s Cup and APEC Summit in 2021 continues to fuel further interest.

Outside of Auckland, development activity is most pronounced in Wellington and Christchurch accounting for 824 rooms under construction. Queenstown, continues to lag with just has three hotels under construction totalling circa 400 rooms. 

Fortunately the growing development pipeline across most key centres will now see notable increases in respective hotel inventory over the medium to long term.

 

Hotelspipeline

New Zealand Hotel Development Pipeline

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Dean Humphries

National Director | Hotels

Auckland CBD

Dean is a highly respected hotel investment advisor specialising in the disposal, acquisition and valuation of hospitality and tourism assets.  Dean provides advice to many institutional and tourism related entities including those noted in the client info tab.

Dean is also actively involved in a range of work in the wider South Pacific basin including; Fiji, Tonga & Samoa.

Dean joined Colliers International in May 2013 as National Director, Hotels for New Zealand and the South Pacific.

Prior to that Dean was Executive Vice President of Jones Lang LaSalle Hotels & Hospitality Group New Zealand & Queensland with over 25 years’ experience in the wider property industry.

He has also been actively involved in the wider property industry, holding a senior lecturing position at the University of Auckland between 1999 and 2011.

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