Off to a flying start

The year is gaining pace, as investor interest in the HTL sector continues to strengthen.

Market sentiment across the hotels, tourism and leisure (HTL) sector remains strong as international visitor numbers rebound to around 97 percent of pre pandemic levels. While transactions were slower last year, many solid deals still progressed, and activity has accelerated significantly since mid January with a clear lift in concluded deals nationwide.

Auckland is currently leading transactional activity, with capable buyers who remained cautious last year now moving decisively.

Updated immigration and investment settings are also influencing market behaviour. The Active Investor Plus (AIP) visa has already brought $3.39 billion into New Zealand, attracting high value global investors, while the Business Investment Visa (BIV) is gaining traction. These shifts are likely to spur additional activity in business going concern assets and are likely to drive activity among domestic investors seeking opportunities.

Close engagement with the Bayleys HTL team and our wider network is increasingly valuable as market conditions evolve, particularly as we are well-connected to frontline immigration advisers who are dealing with daily enquiry from potential offshore investors.

Global interest in HTL-aligned businesses and property assets is strengthening off the back of geopolitical tensions in the Middle East, as the unsettling bigger picture spurs overseas-based New Zealand residents to consider reallocating capital back home.

Government investment is also providing a boost to the sector, with a $70 million Major Events and Tourism package designed to attract large scale international acts from 2026, tipped to benefit Auckland and other main cities with high capacity venues.

February was a standout month for New Zealand’s hotel sector, with national occupancy and revenue nearing pre Covid levels. Auckland achieved 89 percent occupancy, driven by major events and domestic travel, and Christchurch recorded one of its strongest February results on record, supported by solid demand and drawcard events. Queenstown remained the country's rate leader, recording its strongest monthly growth since August 2023.

Major infrastructure developments are underpinning Auckland’s rebound, with the recently opened New Zealand International Convention Centre securing strong bookings for 2026, and the City Rail Link, set to open in the second half of this year, promising to enhance CBD accessibility and vibrancy.

With strong demand, renewed investor confidence and significant public investment in place, the HTL sector has entered 2026 with considerable momentum.

The Bayleys HTL team is relishing the opportunities and growth expected in the Year of the Fire Horse under the Chinese zodiac. The year will be characterised by bold energy and a “go big” drive and we’d love to take you along for the ride.