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News Release


JLL releases report on Top 10 New Zealand Hotel Operators and Owners

Research shows high levels of confidence in the hotel investment market



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​​​JLL Hotels & Hospitality Group has conducted research and analysis on the major hotel owners and operators in New Zealand. 

JLL’s database of New Zealand hotels as at June 30, 2016, comprises 296 properties and some 27,320 rooms.

The Top Ten owners account for 38 percent of total room supply while the Top Ten operators account for 61.2 percent or 16,708 rooms. 

Hotels & Hospitality Group Director, Shaun Jackson believes this is the first comprehensive analysis and summary undertaken of the hotel industry ‘top owners and operators’ in recent years and it highlights that while the top ten operators dominate management of the majority of hotel stock (managing approximately 61%), ownership is more fragmented with only 38% under ownership of the Top Ten owners.

Top Owners

The top five owners account for 28 percent of New Zealand hotel rooms. 

New Zealand-based CP Group is number one in the list of Top Ten owners, with 17 hotels equating to a market share of eight percent. 

CP’s recent acquisitions include three properties from the Host Hotels and Resorts portfolio, having acquired ibis Wellington in March 2016; Novotel Wellington in November 2015; and the combined Novotel and ibis Ellerslie hotels in August 2015. Recently completed developments by CP Group include Sofitel Wellington, a $51 million, 129-room office conversion. 

CP is also converting the former Reserve Bank Building on Auckland’s Customs Street to an AccorHotels-branded Sofitel So Hotel of 133 rooms. This is expected to be complete in April 2017. A 30-storey, 252-room hotel has also been proposed for Customs St, to be located alongside the Sofitel So. 

Second in the Top Ten is Singapore-owned CDL Hotels, with 12 hotels equating to a market share of six percent. CDL’s portfolio has remained unchanged in recent years. The company is currently transforming the Copthorne on Auckland’s waterfront to a 190-room five-star Millennium Hotel, expected to be complete in early 2017. 

CDL will also take over the management of the 452-room Rendezvous Auckland Hotel in September 2016 and the hotel will be renamed the Grand Millennium Auckland. 

In third place is the Hong Kong-owned Colwall Property Investment Limited, which recently acquired two hotels in Queenstown, the 273-room Novotel Lakeside Queenstown and 73-room Tanoa Hotel Group Aspen Hotel Queenstown. Colwall has eight New Zealand hotels, or six percent of the total. 

Top Operators

New Zealand’s Top Ten operators accounted for 61 percent of New Zealand’s total room supply as at June 31, 2016. Collectively that group operates 178 properties comprising some 16,708 rooms. 

AccorHotels is the largest operator with 32 properties, a market share of 17 percent of the JLL hotel database. Between 2005 and mid-2016, AccorHotels increased its portfolio by 14 properties. The company manages 11 of CP Group’s hotels. 

Millennium Hotels & Resorts is the second largest operator, with 18 properties or 8 percent of the total. Millennium has experienced a decline in representation with 12 fewer properties, a 40 percent reduction in rooms.  A reversal of this trend will occur with the re-branding of the 452-room Rendezvous Auckland Hotel to Grand Millennium Auckland and upon the completion/ re-opening of the re-development of the former 187-room Copthorne Harbour City to the 190-room, 5-star Millennium Hotel Auckland.

Scenic Circle Hotels is the third largest operator, with 16 properties or five percent of the total. 

New additions to the operators list since the 2005 survey are Choice Hotels Australasia (CHA), Distinction Hotel Group and Toga Far East Hotels.

What’s next? 

Stephen Doyle, Hotels & Hospitality Group National Director further commented that it is encouraging that ownership of hotels is predominantly owned by NZ interests with NZ businesses benefiting from the recent upswing in tourism. The ownership of hotels by NZ interests demonstrates high levels of confidence in the hotel investment market, which is now equalling attracting the interest of foreign investors looking also to share in the success of the industry.

With a rapidly growing development pipeline (particularly in Auckland, Christchurch and Queenstown) we are likely to see AccorHotels consolidate its dominant position, as well as the introduction of new brands. Fu Wah International Group is about to begin construction of the five-star 190-room Park Hyatt Auckland on what was the Team New Zealand home base in Wynyard Quarter.  

You can download the full report here: