A new report from Bayleys suggests the risk of a hotel oversupply in the Auckland CBD is low.
In the most recent Marketbeat report, the real estate company claims that the opening dates for the hotels are likely to be staggered enough. Bayleys believe that delayed openings, which are expected in the hotel industry thanks to escalating costs and constraints in the construction industry, will spread the hotel stock over a wide time frame.
Wim Ruepert, director, Horwath HTL NZ had suggested in a report that a hotel oversupply was imminent in the Auckland CBD if all the hotels scheduled to open in 2019/2020 open at once. These hotels are all eager to open in time for much-anticipated NZ International Convention Centre which will bring thousands for more people into the city.
The report states that continuously growing visitor arrivals and spending, as well as high occupancy rates – 83.9 percent across all Auckland hotels in 2018 – are the other key reasons the new hotels opening, will not cause an oversupply.