The ‘short and sharp’ impact of a big weekend of summer events injected a much-needed financial boost into the Auckland hotel market, according to CBRE analysis.
The SailGP event, along with two sell-out concerts at Eden Park by American country singer Luke Combs over one weekend in mid January, generated over $5 million of additional room revenue for Auckland hotels.
The coinciding events caused a four-night spike in hotel room occupancy on 16, 17, 18 and 19 January, said Peter Hamilton, Director of Hotels & Leisure at CBRE.
An additional 8,000 rooms in Auckland hotels were sold over the four days, over and above usual occupancy rates for the same time of year. 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.
The two events resulted in a 17% increase in room occupancy per day over the four days, with hotels also charging inflated rates in response to the spike in demand. Average daily room rates were 25% higher over the long weekend, resulting in $5.2 million of additional revenue for hotel operators.
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. This is owing to several factors including a slowdown in the recovery in international arrivals and reduced consumer spending caused by weaker economic conditions.
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.
The Sail GP/Luke Combs weekend illustrates the significant value major citywide events provide to hotel operators, as well as benefits to many other businesses across the city, said Hamilton.
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.
A new CBRE report shows how recent events in major Australian cities have impacted the hotel market, with similar results to the Auckland analysis. The Taylor Swift Eras Tour in Sydney in February 2024, for example, delivered a remarkable boost to the local accommodation market, with room revenue surging by an estimated $36.4 million.
The city has a solid schedule of events in 2025 including major concerts by Billie Eilish, Oasis and Katy Perry, as well as sporting tournaments including the Lions Tour and cultural events.
In Melbourne, the Australian Grand Prix in March 2024 resulted in average daily room rates rising by 59% over an eight day period, generating around $50m of additional room revenue.
Australian cities provide a good example of how strong investment into events provides wide-ranging economic benefits,said Hamilton.
Melbourne in particular has long been regarded as a great example of a city that invests heavily in event attraction and is reaping the rewards. 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.
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Dallas, is the world’s largest commercial real estate services and investment firm (based on 2023 revenue). The company has more than 130,000 employees (including Turner & Townsend employees) serving clients in more than 100 countries. CBRE serves a diverse range of clients with an integrated suite of services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.
Dan Scott
Marketing and Pitch Director, New Zealand
CBRE Hotels
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