The first quarter of the year has come to a speedy close after a very successful start to 2023.
Across the first three months of the year, The Stay Hub's Average Daily Rate (ADR) has beaten the total Auckland short-term rental market for all property types and continued to achieve exponential growth compared to 2022. Our one-bedroom properties have sat +73% above the wider market at $222, while two-bedroom properties achieved an ADR +62% higher at $327. For three-bedrooms, The Stay Hub accomplished an ADR of $412, sitting 28% higher than the market average, and four bedrooms brought in an ADR of $568 beating the market by +13%.
The upsides that we are achieving for our owners, when annualised, are significant. Even with only 80% occupancy, still significantly less than what we are achieving for our portfolio, this equates to an increase in earnings of $27,448 for our one bedroom properties, $36,792 for two-bedroom, $26,572 for three-bedroom and $19,564 for four-bedroom properties.
The Stay Hub ADR Growth Year on Year: Q1 2023 versus Q1 2022
Across the board for all property types, we have achieved nearly 91% occupancy and still have plenty of upside to come in the year ahead. July and August are set to be big months for short-term rentals, with 40,000 Americans alone expected for the FIFA Women's World Cup, with the Europeans and rest of world still to release attendance estimates, and headlining events from the likes of Michael Bublé and Sam Smith and even Pink next year already bringing in early bookings. If you haven't already made the switch to short-term rentals, there has never been a better time to enter the market!
TOURISM NEW ZEALAND: INTERNATIONAL TRAVEL UPDATE
Tourism New Zealand recently held a webinar discussing their latest research on the international travel market with some very positive results. China was a key area of interest, being our second largest market for total arrivals in the country prior to the pandemic. Travel demand indicators remain strong, with 43% of Chinese people holding a preference for New Zealand as a holiday destination. Aviation connectivity for flights from China to New Zealand has been sitting at 69% capacity since the borders opened, with plenty more upsides to come as it continues to climb and return to pre-Covid levels.
New Zealand's brand equity in China has also seen a growth in target audience, with almost 33 million Chinese travellers actively considering travel to New Zealand. Out of these travellers, 62% rate New Zealand as their number one preferred destination and 27% have a ready-to-book mindset. Business professionals will be the first big comeback for Chinese travel - great news for short-term rentals in Auckland, which attract a large number of people travelling for business throughout the year. Leisure travel for Chinese citizens is expected to scale up from July as the country re-adapts to normal life after enduring some of the toughest and longest pandemic restrictions.
Across the ditch, our Australian neighbours are also making a comeback with strong results from December 2022:
○ Visitor value reached 97% of its former value in December 2019 ○ The average Australian holiday spend increased 39% ○ Airline capacity hit 76% of its former volume in December 2019 ○ Visitors totalled 85% of arrivals in December 2019
Ahead of China, Australia was our largest market for total arrivals in New Zealand before Covid-19 took the world by storm. Tourism New Zealand has attributed Australia as being our 'first to fly' international market for accelerating recovery in the travel industry.
We'd love to give you a free rental appraisal so you can learn what you could earn!
○ Call 0508 STAY HUB (782 9482)
○ Complete our rental appraisal form here
○ Click below to book a 15 minute discovery call at your convenience