The Rydges Hotel on Featherston St in Wellington is set to reopen after a revamp. Photo / Mark Mitchell
Wellington hotels are filling up as they juggle staff shortages, welcome back international travellers, and squeeze in people on pre-Christmas business trips.
The capital recorded the highest monthly accommodation occupancy rate in the country in October and the number of visitors spending nights on a short-term basis is trending upwards.
One hotel in the city reported 90 per cent or higher occupancy rates over the past three months, while another has experienced some of the best months in recent memory.
WellingtonNZ destination marketing and communications general manager Todd Barberel said the city was doing well off the back of a season of events including an All Blacks test, Wellington on a Plate, Beervana, and World of Wearable Arts.
Business travel has also increased as the countdown to the Christmas holidays starts, he said.
“When you combine the domestic demand, the business travel, and then with the opening of borders and more international guests and visitors coming in, accommodation is tight.”
But he also said as long as people booked ahead of time, there were still beds available.
Wellington recorded the highest monthly occupancy rate in the country for October. At 76 per cent, the capital was well above the national rate of 52 per cent, Ministry of Business Innovation and Employment figures show.
Individual visitors spent a total of 233,000 nights in short-term accommodation in Wellington during October. The overwhelming majority of these stays were made by domestic visitors.
This is the highest number of total guest nights recorded in the capital since at least mid-2020. The overall trend has been increasing since the Delta outbreak plunged the country into lockdown last year.
Village Accommodation Group chief commercial director Hazel Rigler said there was high demand across all of their properties in the capital, including Boulcott Suites.
“October and November have been some of the best months we have ever seen from a rate and occupancy perspective combined.”
Rigler said like other operators across the country, they have struggled with a lack of staff to provide the level of service and standards expected as hotels bounce back from Covid-19.
The hotel has been forced to limit availability when needed, she said.
“Thankfully in this past month those restrictions have been eased somewhat and we are nearly back at full capacity. We’re delighted to be welcoming back international visitors to the city as well as our loyal corporates and domestic leisure guests.”
Barberel said accommodation providers across the board have been juggling staff shortages.
“It’s a real balance for a lot of them of having to look at the revenue potential on the table, but also the welfare and wellbeing of their staff in being able to provide a service to their guests at a level they would expect.”
Sarin Hotels commercial director Rajeev Sharma estimated the DoubleTree by Hilton has experienced at least 90 per cent occupancy levels for the past three months.
“[The] Wellington market was quite busy from September to November due to city-wide events, conferences and small corporate meetings.”
Airbnb New Zealand and Australia country manager Susan Wheeldon said many travellers were booking getaways at this time of year.
Wellington was proving to be a popular destination for both local and international visitors, ranking second in searches by New Zealand guests in the last quarter, she said.
“Busy periods highlight just how important short-term rental accommodation is to meet demand from visitors who contribute to the local economy.”
Barberel said more beds will soon become available with Rydges Wellington on Featherston St set to reopen after refurbishment and seismic work. Sojourn Apartment Hotel has also opened on Ghuznee St.