JLL’s executive vice president Nick Thompson wrote that despite the differences between positions, investor sentiment in the New Zealand market is improving.
The New Zealand hotel market is currently showing demand and trading performance forks in many major markets and regions. The strength of the Queenstown market underscores this gap, which is currently seeing a surge in international demand, with leisure and business travelers driving strong trading levels, while new supply is being processed on the other end of a market like Auckland, and Wellington is adapting to reduce government spending.
The arrival of international visitors continued to rise, reaching 3.37 million in the year ended May 2025, an increase of 5.2% over the previous year (YE May 2024). Although Australia remains the main source market, its recycling rate has surpassed source markets such as the United States and India, both of which surpass their pre-pandemic figures.
Similarly, we have witnessed the two-tier markets of investors’ appetites, where the differences between locations and asset classes are emerging. But overall investor sentiment is improving, driven by lower interest rates, and the market is widely seen as a transparent haven.
Our recent record-breaking deal underlines this positive investor confidence, with InterContinental Auckland selling NZ 180 million to Singapore-based Hotel Properties Limited (HPL), the largest single hotel asset sales ever.
Posts New Zealand: “Two-tier market” Appear first Hotel Management.
