Investment Fuels Tourism Property Market

A decisive shift in investor confidence is reshaping New Zealand’s tourism, hospitality and leisure property market, with renewed international visitation, improving operating fundamentals and the return of sophisticated private capital driving a new cycle of transactions across the country, Bayleys brokers say.

Bayleys Hotels, Tourism and Leisure - National Director, Wayne Keene, says the industry has moved beyond recovery and is entering a new phase of investment, expansion, and succession across hotels, motels, tourism businesses, wellness, recreational, and specialised accommodation assets.

“Investment follows performance,” Keene says. “With visitor numbers, occupancy and profitability strengthening, capital is returning to tourism assets because the fundamentals support long-term value creation.”

That evolution is reflected in both market conditions and transaction activity. Bayleys’ Hotels, Tourism and Leisure team settled $25.4 million in sales during April and May 2026 alone, with a further $33.2 million of transactions currently progressing through due diligence, highlighting the depth of buyer demand for quality tourism assets.

The activity mirrors Bayleys’ own investment in the sector. Over the past year, the firm’s specialist division has strengthened its national presence, adding experienced operators across Auckland, Waikato and the Lower North Island, while continuing to work closely with Bayleys Business Sales to advise owners, investors and operators on increasingly complex transactions.

The expanded team now comprises almost 20 specialists nationwide, with expertise spanning accommodation, tourism enterprises, leisure assets, and hospitality businesses.

Keene says specialist advice is becoming increasingly important as buyer profiles diversify.

“Experienced owner-operators are looking to acquire businesses they can actively grow, alongside private investors seeking quality assets with resilient income streams. Those buyer groups have different objectives, so understanding both the property and the underlying business is critical.”

International capital is also returning in greater numbers. Improved travel connectivity has contributed to renewed enquiry from offshore buyers, particularly from Asia, while domestic purchasers remain active in seeking lifestyle businesses that combine commercial performance with long-term personal value.

The improving investment landscape is underpinned by a strengthening operating environment.

New Zealand’s hotel sector recorded another strong month in May, with Revenue per Available Room (RevPAR) increasing 12.3 percent compared with the same month last year. International visitor arrivals also rose from around five percent year-on-year, led by a 12 percent increase in Australian visitors, supported by expanded airline capacity, Tourism New Zealand marketing campaigns and a favourable exchange rate.

Performance across the country’s major tourism markets remained encouraging. Auckland recorded a 14.9 percent increase in RevPAR, supported by stronger corporate, conference, leisure and group demand. Queenstown led the major centres, with RevPAR rising 25.1 percent as domestic travel combined with growing international visitation, particularly from China. Christchurch continued to benefit from higher international arrivals and group touring activity, while Wellington posted its fifth consecutive period of RevPAR growth as conference demand strengthened.

Keene says the breadth of recovery is reinforcing investor confidence.

“We’re seeing demand supported by multiple drivers. International visitation continues to strengthen, domestic tourism is resilient, and business events and conferences are returning strongly, contributing to a stable and balanced environment.”

Recent transactions underscore that confidence, including the $9 million sale of the Beechtree Motel in Taupō, the acquisition of the management rights and associated real estate at Central Park Apartments in Cromwell, and a high-profile Nelson accommodation investment that changed hands at a 5.8 percent yield. All three were purchased by New Zealand investors, reinforcing the depth of domestic demand for well-positioned accommodation assets.

“The best tourism businesses are tightly held, so quality opportunities don’t come along often. As more long-term owners begin planning for succession, we’re seeing a welcome increase in quality assets coming to market.”

Looking ahead, Bayleys will showcase many of these opportunities through its premium Hotel, Tourism and Leisure portfolio, to be released in October. The publication will feature hotels, tourism businesses and leisure assets from throughout New Zealand and the Pacific.

“The market is evolving quickly, and so are we,” Keene says. “By continuing to invest in specialist capability and national coverage, we’re ensuring clients have the expertise needed to capitalise on the next phase of New Zealand’s tourism investment story.”