Hotels in line for huge lift from Cup

The winners of the Rugby World Cup will lift the Webb Ellis Cup, but hotels are looking forward to a financial prize. Photo / Sarah Ivey

New Zealand hotels will get a huge boost from the Rugby World Cup, according to a study released tomorrow.

Dean Humphries, national director of Jones Lang LaSalle Hotels in Auckland, has prepared an analysis of the cup and predicts huge hotel sector benefits.

Fans will be in New Zealand for an average of 20 days, more than double the time they stayed in France, he said.

"RWC 2011 is an event of global significance and will have a significant impact on the performance of hotels and other accommodation," he said.

The impact of the cup would be felt on hotels across the country, as the event was being staged in 12 cities. Those in the main centres - Auckland, Wellington and Christchurch - would be the ones most likely to remain full throughout, he said.

"The financial impact of this six-week tournament will be pronounced on most hotels in the country, given the tournament is being held in 12 cities. Many hotels will trade at close to full occupancy over the tournament, especially those hotels in areas which have the most games, such as Auckland, Wellington and Christchurch."

Room rates for hotels were likely to hover anywhere between twice and four times the normal rate during the six-week tournament, which begins on September 9 next year.

Room rates for hotels located in cities hosting the 44 pool matches over the four-week period from September 9 to October 2 were likely to be at least twice the normal room rate, he said.

Room rates for hotels located in the main cities or satellite cities such as Hamilton hosting the quarter-finals, semifinals and finals were likely to be up to four times normal room rates.

The overall annual financial impacts of the six-week tournament will create a spike in revenue for most New Zealand hotels, he said.

"This is welcome news for an industry which has been hard hit by the global financial crisis over the past two years," Humphries said.

Humphries' paper will be presented at the New Zealand Hotel Conference tomorrow at SkyCity.

Staff on Hyatt Regency's reservation line said they could not provide World Cup rates for its five-star Auckland hotel. Prices had not been loaded yet and guests should inquire in a few months' time. Stamford Plaza Auckland and Hilton Auckland are taking much the same approach.

Staff said rates would only be released towards the end of this year but Stamford said it was unlikely rooms would be available. World Cup organisers had a preferential booking agreement with the hotel, reservation line staff said.

A spokeswoman for The Langham Auckland said public rates would be ready later this year.

Cup projections:

* 85,000 visitors and $55 million hotel bookings.

* Three cruise ships to offer 5500 beds.

* Extensive long-term tourism benefits.

* Catalyst for economic recovery.