Arrivals and confidence rise

An increasingly confident hotel investment market is emerging fuelled by strong deal volumes, surging international visitor arrivals and strengthening room-night growth in key gateway cities.

Bayleys’ Hotels, Tourism and Leisure (HTL) team has entered 2026 with real momentum, delivering a very strong first quarter marked by a significant uplift in both settled deal numbers and total transaction value compared with the same period last year.

Bayleys HTL national director, Wayne Keene says on top of this, a large volume of conditional transactions is currently progressing through the pipeline, underscoring the depth of active enquiry and the confidence returning to the market.

International visitor growth continues to strengthen, with arrival volumes in June up five percent year-on-year and recovering to 94 percent of June 2019 levels. Australia and China led this growth, supported by the government’s 12-month visa-waiver trial for Chinese travellers arriving from Australia.

Room nights climbed approximately 22 percent year-on-year, buoyed by record Australian visitation and a strong winter tourism season. South Island airports reinforced this upswing, collectively welcoming 1.05 million overseas arrivals in the June 2026 year, up from 881,300 the year prior.

Christchurch’s resurgence is also gathering pace, with Te Kaha stadium driving renewed activity and visitor growth. Queenstown and Christchurch captured a large share of international arrival growth in Q2, supported by a 43-percent rise in tour group business and a 56-percent lift in Chinese holiday arrivals.

It is also encouraging to be talking positively about Auckland again. The New Zealand International Convention Centre is already making a measurable impact, with more than 120 events confirmed for 2026, and circa-350,000 visitations in the pipeline for FY27. Auckland hotels recorded the strongest room-night growth of the major markets in Q2, up 13.4 percent year-on-year, while the City Rail Link is set to deliver new efficiencies and support the city’s next phase. Demand for small to medium-sized hotel assets in the $5–$15 million bracket remains firm.

New Zealand’s hotel sector posted encouraging June and Q2 results, with confidence clearly building in the country’s key gateways. Queenstown, Christchurch and Auckland led national RevPAR growth, buoyed those strengthening international arrivals, rising tour group activity and improved global connectivity through Australian transit hubs.

While regions such as Wellington, Rotorua, Dunedin, Hamilton and Nelson/Marlborough saw softer winter demand, there’s identified opportunity ahead as international recovery deepens and event-led visitation expands, setting the stage for broader market improvement through the latter part of 2026.

It’s a market on the move and the Bayleys HTL team is here to take you along for the ride.