Both markets have seen growth in visitor nights. In Australia, international visitor nights and trip spending surpassed 2019 levels by 2% and 3%, respectively, in the 2022-23 financial year (1 July to 30 June).
Looking ahead, international visitation is forecast to surpass pre-pandemic levels by the end of 2025, reaching 9.5 million trips. By 2028, it is expected to reach 12.1 million visits, 27% above 2019 levels, with a projected growth rate of 12.9% over the next five years.
The recovery of tourism is driving hotel construction. Australia added around 1,800 rooms during 2024, focused around Melbourne, with 5,700 in the pipeline. In New Zealand, last year saw the addition of 850 new rooms, with 1,600 under construction.
Last year saw a slow pace in the transactions market, but 2025 has begun with a strong start. In Australia, $676 million in sales were recorded in the first quarter, marking double the volume compared to the same period in 2024.
In New Zealand, the $180m sale by Precinct Properties to Hotel Properties Limited of the 139-room InterContinental Auckland Hotel in March meant that the total deals volume of $250m in Q1, exceeded the total of both 2023 and 2024 full years and was almost as much as the total for all of 2022.
Alex Sogno, CEO of Global Asset Solutions, one of the report’s authors, said: “Australia and New Zealand are growing in popularity as destinations for both domestic and international travellers, drawn to the countries’ rich heritages and stunning natural features. These rising numbers are feeding the demand for hotels across both countries.
“We are seeing increased interest from international groups, particularly from Europe, looking to build scale in the region by acquiring portfolios and hotel operating platforms. There is also a growing appetite for franchises from owners wishing to retain control of their assets, suggesting an expanding role for motivated asset managers seeking to maximise the potential of a property.”
