New Zealand's SailGP summer event helped boost Auckland's hotel industry. Photo / SailGP
New Zealand's SailGP summer event helped boost Auckland's hotel industry. Photo / SailGP
Auckland’s hotel industry got a much needed boost over the summer break with two big events leading the uptick, but the lack of locked-in events in future and the issue of room supply to match demand are causing concern.
The big events from January 16-19, includingSailGP and country musician Luke Combs’ two sold-out concerts at Eden Park, contributed to more than $5 million in additional room revenue for Auckland’s hotels.
CBRE director of hotels and leisure Peter Hamilton said the “short and sharp” impact was a much-needed boost.
“An additional 8000 rooms in Auckland hotels were sold over the four days, over and above usual occupancy rates for the same time of year,” Hamilton said.
“This provided a substantial revenue boost for the Auckland hotel sector, which has had a large room supply increase in recent years and has been struggling with reduced demand outside peak periods.”
Peter Hamilton, director of hotels and leisure at CBRE.
Over the four-day period, there was a 17% increase in room occupancy per day, with hotels also charging inflated rates in response to the spike in demand.
The average daily room rates rose by roughly 25% over the weekend, resulting in $5.2m in additional revenue for hotel operators.
“Major events are essential for stimulating Auckland’s economy at a time when growth in visitor numbers is struggling to recover during the global economic downturn.
”Increased local and central government investment into a solid forward schedule of citywide events has immense potential benefit for hotels, hospitality businesses, retailers, transport operators and tourism providers.”
The results of big-ticket events are evident across the Tasman, with CBRE analysis showing that the Taylor Swift Eras Tour in Sydney in February 2024 boosted the local economy significantly, with room revenue increasing by an estimated $36.4m.
Sydney has lined up a solid schedule of events in 2025, including major concerts by Billie Eilish, Oasis, and Katy Perry, as well as sporting tournaments such as the British and Irish Lions Tour and cultural events.
In Melbourne, the Australian Grand Prix in March 2024 generated around $50m of additional room revenue due to average daily room rates rising by 59% over the eight-day period.
Family man and friendly face Luke Combs performed two sell-out concerts at Auckland's Eden Park. Photo / Corey Fleming
Hamilton explained how strong investments into events like those seen recently provide wide-ranging economic benefits, and are something New Zealand needs to attract more of.
Demand for hotel rooms in Auckland has been trending downward since April 2024 and average room rates are decreasing for the first time since borders reopened in 2022.
The ongoing slowdown of international arrivals and tough economic conditions are contributing factors.
Hotels also face increased competition, with room supply in the CBD 22% higher than in 2018.
A further 5% increase in room supply is expected over the next two to three years.
Hotel room supply across New Zealand in 2024 was 21% above 2019 levels, but room demand was 2% lower than 2019, according to CBRE research.
“With the additional room supply in the Auckland market, it’s a pivotal time for businesses, council agencies, and central government to work together to attract more events to boost demand.
“The opening of the New Zealand International Convention Centre in early 2026 will help, but we also need a broader base of regular high-profile events to fill the gap.”
In 2025 New Zealand is set to see concerts from musicians Chris Stapleton, Dua Lipa, and Tyler, The Creator.
The city will also see multiple All Blacks test matches, fixtures for the Black Caps and White Ferns, as well as ongoing domestic sports competitions.
Tom Raynel is a multimedia business journalist for the Herald, covering small business and retail.
