Slow progress reopening Christchurch hotels
More than a year after an earthquake reduced much of Christchurch to rubble, hotels in the city are reopening at a slower rate than expected.
Speaking at New Zealand Hotel Council’s (NZHC) 2011 Annual Operating Survey presentation in Christchurch this afternoon, NZHC Executive Officer Rachael Shadbolt said that severe aftershocks in June and December, as well as delays from insurers and local authorities, have made it difficult for hotels to set firm reopening dates.
In 2011 Christchurch’s eight operational NZHC member hotels had an 85% occupancy rate and an average daily rate (ADR) of NZ$136 (US$111).
Bruce Garrett, Christchurch NZHC Regional Chair and GM of The George hotel, said; “As a result of the earthquakes the city’s hotel room inventory dropped from 3,717 pre-February 2011 to 853 rooms after the earthquake. Most hotels that are currently operating have significantly increased occupancy and average room rates outside the normal occupancy levels of the mid 60% range. Hotels that are currently operational are very busy but look forward to other properties reopening in the future. This would help free up some much needed accommodation to entice tourism visitors back into the region.”
Looking at the results for the whole country Ms Shadbolt said the Rugby World Cup had an impact on hotel performance in 2011, with strong room rates achieved during the key RWC game days. These rates and the increased Christchurch room rates boosted nationwide ADR to NZ$146, up from NZ$129 in 2010.
“The RWC period brought some challenges for hotels, with significant displacement of traditional September and October business being pushed out to either side of the event. This meant that while good rates were achieved during RWC game days hotels were very quiet mid-week as traditional corporate and conference business was practically non-existent during that time,” Ms Shadbolt said.
Commenting on the current situation in Christchurch, Ms Shadbolt added; “Our focus for the next couple of years is on re-establishing the hotel stock in the city, proactively encouraging visitors to return and working closely with council to ensure the convention centre is rebuilt as soon as possible. That facility is a significant provider of business to hotels, particularly in the winter months and it is vital it is rebuilt quickly. There’s no point reopening hotels if there’s no-one there to fill them.”