Turning the country’s economic ship around has been a slow process, but the outlook for the hotels, tourism and leisure sector is bright as investment fundamentals improve.

The market has been in flux for several years now, with vendors and buyers grappling with timing and values. While there have been some encouraging transactions despite this uncertainty, it seems we have now turned a corner and there’s more balance and confidence in the market.

Performance data for hotels shows a lift in sentiment and, while occupancy is not yet back to pre-pandemic levels, the dial is moving in the right direction and some markets are high achievers.

A strong ski season, rising international visitor numbers, improved inbound flight schedules, the return of corporate business, and continued strong demand in key markets like Christchurch and Queenstown have contributed to better results across the sector.

We know New Zealand needs to attract more events and world-class acts to draw crowds and supercharge the hotels, tourism and leisure (HTL) sector. SailGP returns in January, while the One New Zealand stadium opens in Christchurch in April 2026 and both will provide some stimulus.

The recent government announcement of a $70m package rolled out over two years to boost tourism will allow us to compete on the international stage for the biggest artists and events, and hospitality and accommodation providers are buoyed by this.

The much-anticipated New Zealand International Convention Centre officially opens early next year and is forecast to bring an estimated 33,000 conference visitors to the city, contributing $90 million of new economic spending annually. This will be a significant off-peak tourism driver with the spend rippling around the country as visitors explore further afield.

Auckland is also eagerly awaiting the opening of the City Rail Link, with the major infrastructural project already unlocking opportunity in the city, particularly in the Midtown precinct where there’s been some significant hotel investment.

Meanwhile, the government is putting action behind its growth mantra announcing big changes to its investor visa policy settings to attract more overseas investment here. We discuss how this could impact the HTL sector in our portfolio’s editorial insights, along with exploring some of the strategic moves by hotel developers and operators around the country.

New Zealand is very much open for business, with the welcome mat laid out for the world to see.

We’d love to connect with you to explore opportunities for investment or divestment – so please check in with us for an up-to-date take on HTL market dynamics.