AUSTRALASIAN LEADERS
SNAPSHOT: SUDIMA HOTELS Year the company was founded: 2000 Year first hotel opened: 2000 Number of brands in the organisation: 7 Current number of hotels and rooms (APAC): 8 hotels; 1,358 rooms Head office location: Auckland
Les Morgan
Chief Operating Officer
Investment in skills, sustainability and tourism essential for 2026. AS I REFLECT on the past year, it’s clear that the New Zealand tourism economy has endured another period of volatility, yet the underlying trajectory has remained encouraging. We continue to see a positive recovery trend, even if it hasn’t manifested evenly across the country. Wellington and Auckland have been tough battlegrounds for hoteliers, with little to no RevPAR growth. In contrast, much of the rest of the country – especially the South Island has benefited from a resilient rural sector and steadily improving international visitation in key tourism regions. Looking toward summer and beyond, the outlook is increasingly optimistic. As interest rates ease, the domestic economy is beginning to re-energise, and our hotels are already feeling an uplift through increased corporate travel, conferences and stronger mid-week demand. Support from the central government has been welcome, particularly investment in major events and destination marketing, which has played an important role in driving visitation. International Tourism continues to strengthen in line with New Zealand’s strong export performance and the appeal of our comparatively weak dollar. Holiday arrivals have finally reached full recovery, with Australian visitor numbers up 11%, the US by 6% and China remaining stable. We’re hopeful Chinese arrivals will grow further following recent policy changes allowing Chinese citizens holding a valid Australian visa to visit New Zealand for up to three months. 92
HM The Business of Accommodation
Auckland continues to benefit from rising international demand, but this has been offset by a significant increase in hotel inventory, elevated operating costs and a softer local economy – creating the most challenging trading conditions the region has seen in decades. However, two major developments will reshape Auckland’s visitor landscape. The New Zealand International Convention Centre (NZICC), formally handed over to SkyCity in late 2025, with the official opening scheduled this month. CBD hotels are already reporting substantial forward business tied to its launch. The City Rail Link (CRL), the country’s largestever transport infrastructure project, will also open in 2026, dramatically improving access and overall visitor experience across the CBD. Taken together – growing tourism activity, major events, improved connectivity and a stabilising economy – the signs point to the worst being behind us. In an industry so vulnerable to Black Swan events, it’s always risky to declare a turning point, yet after several difficult years, the current momentum feels both positive and deserving of acknowledgement. Long may it continue. n
“Taken together – growing tourism activity, major events, improved connectivity and a stabilising economy – the signs point to the worst being behind us.” Les Morgan, Sudima Hotels
The Sudima Queenstown Five Mile has benefited from a resilient rural sector and improving international visitation to the region