An artist impression of SkyCity's New Zealand International Convention Centre hotel. The build is part of a boom in new hotels to help Auckland cope with visitor numbers. Photo / supplied.
An artist impression of SkyCity's New Zealand International Convention Centre hotel. The build is part of a boom in new hotels to help Auckland cope with visitor numbers. Photo / supplied.
Auckland is gearing up for the arrival of five new 5-star hotels, including glamour chain The Ritz-Carlton.
The new developments are set to add 2500 new hotel beds over the next 10 years, a move which will ease pressure on the city's tourism but not eliminate the shortfall.
By 2030,at least 19 new hotels will be completed and open for business in the City of Sails.
With Auckland experiencing record visitor growth - worth $7 billion a year according to Auckland Tourism Events and Economic Development (Ateed) - peak seasons and major events are triggering shortages of places to stay.
Hotels are already in short supply across Auckland months out from June's British and Irish Lions rugby tour, and even UK pop star Adele's first visit to New Zealand has caused a rush on hotel rooms for her three shows in March.
According to 'Project Palace', a 2016 report released by the Government, the independent forecast of regional hotel activity estimated around 2500 new hotel rooms will be built in Auckland over the next 10 years.
However, that report also notes the expected shortfall by 2025 in Auckland is actually up to 4,300 new hotel rooms.
Ateed confirmed 19 new builds or hotel refurbishments are slated for completion by 2030 to "help ease some of this [tourism] pressure".
Some of the new players also promise to bring a next-level of luxury to the Auckland market, with world renowned glamour chain The Ritz-Carlton one of at least five 5-star hotels headed for New Zealand's biggest city.
Others included the Park Hyatt Auckland and Sofitel So hotels in the CBD and a new hotel planned for Auckland Airport.
Also, SkyCity's latest addition to the Auckland skyline will include a 300-room, five-star hotel as part of the $700 million New Zealand International Convention Centre.
SkyCity said it needed to build more rooms to avoid turning tourists away.
"SkyCity Grand Hotel is one of New Zealand's premium hotels and frequently runs at capacity," said Brad Burnett, general manager of Sky Tower and SkyCity's hotels.
"The new Hobson Street hotel will help absorb future demand for hotel rooms in Auckland, particularly with the development of the New Zealand International Convention Centre, with the city expecting to welcome an estimated additional 33,000 international convention delegates annually."
Cranes litter a changing Auckland skyline, with new hotels a large portion of the major construction work, including SkyCity's new 5-star NZICC hotel. Photo / file.
A spokeswoman for The Ritz-Carlton did not respond to a request for comment. But in August last year, The Ritz-Carlton released a statement confirming it was entering the Auckland market.
"We have long desired to bring The Ritz-Carlton to New Zealand and we've patiently waited for the right partner and opportunity that will create a showcase worthy of this world-class city," Hervé Humler said, president and chief operating officer of The Ritz-Carlton Hotel Company.
"We're delighted to be partnering with NDG Asia Pacific (NZ) Limited to open the first Ritz-Carlton in the land of the long white cloud."
Rooms at The Ritz-Carlton in Tokyo, Japan start from 47,700 yen ($578) per night while suites can cost 163,000 yen ($2000) per night.
Ateed said making sure visitors get a good experience of the city is a strategic priority and Auckland needs to be able to respond to record tourism interest.
"Auckland is experiencing record growth from the visitor economy, which now delivers more than $7 billion to the region a year," Steve Armitage, Ateed general manager said.
"We are aware that at certain times of the year the city is almost at capacity so having more accommodation in the pipeline - including the additional 2000-plus rooms that are in various stages of development - will help ease some of this pressure.
"Ateed is also focusing on addressing seasonality and helping to smooth out some of the seasonal peaks the region experiences. Examples of this are pursuing major events that attract visitors to Auckland outside of the peak tourism periods in the warmer months, and encouraging business events and conferences to be held during the shoulder seasons."
Armitage said Ateed was unable to give a dollar value of what the economic impact of the new hotels could be for Auckland, but pointed to Project Palace estimates.
"Forecasts in the Project Palace estimate the Average Daily Rate will be $225 by 2025. It's sitting at about $180 currently. However this doesn't capture the forecast spend of visitors when they're here on things like food, activities and shopping," he said.
New Zealand Trade and Enterprise agrees Auckland runs short in hotel rooms, with major events a big factor contributing to demand.
"There is a current shortage of hotel rooms during high demand periods. This is particularly in summer and autumn (December and March quarters) and when there are major events on," said Quentin Quinn, general manager at NZTE.
"As the [Project Palace] report notes, the expected shortfall by 2025 in Auckland is actually up to 4300 new hotel rooms. Currently the projected growth in hotel inventory is only 2500 rooms.
"That is why NZTE has been working with regional authorities and developers to identify additional potential sites for new hotel infrastructure."
