Deconstructing New Zealand’s Hospitality Giants: The Big 3
Hospitality in New Zealand isn't for the faint-hearted.
It’s a sector where resilience and adaptability aren’t just buzzwords; they’re survival skills. To truly understand this market, you've got to look closely at those who've weathered the storm best.
Today, we’re going beyond superficial analysis to uncover the deeper narrative behind New Zealand’s largest hospitality companies - SkyCity Entertainment, Restaurant Brands, and Millennium & Copthorne. We'll dissect strategies, financial performance, highs and lows, and the on-the-ground realities that investors rarely get to see, offering unparalleled insights into these pillars of Kiwi hospitality.
1. SkyCity Entertainment Group
NZX/ASX: SKC
SkyCity Entertainment Group is an integrated gaming and hospitality operator with properties in New Zealand and Australia. Its flagship Auckland complex includes casinos, hotels (SkyCity Hotel and The Grand by SkyCity), numerous restaurants and bars, a theatre, and the iconic Sky Tower. The company also operates casinos in Adelaide (Australia) and regional NZ (Hamilton and Queenstown), plus an international VIP gaming business. Non-gaming revenue streams (hotels, food & beverage, entertainment, conventions) complement the core casino operations.
SkyCity launched an online casino in 2019 via a Maltese subsidiary in partnership with GiG, targeting NZ customers. The business model centers on driving visitation to its integrated resorts, with gaming as the primary profit engine subsidizing hospitality amenities. Major development projects include the New Zealand International Convention Centre (NZICC) and Horizon Hotel in Auckland (opening 2024–25), which will expand its conference/events and accommodation capacity.
Financial Performance
SkyCity’s financial results over the past several years reflect the volatile impacts of COVID-19 and subsequent recovery. This chart sheds light on it’s financials (NZ$) for FY2019 (pre-pandemic) through FY2024.
FY24 :
Reported Net Loss of -$143.3m reflects large accounting adjustments and impairments (vs. $8.0m profit in FY2023).
Underlying/Normalised NPAT was $123.2m (down 7.2% YoY from $133m-level).
Revenue (incl GST) was $959.6m, up 0.3%.
Revenue and Profit Trends:
Before COVID-19, SkyCity generated NZ$820m revenue and around NZ$144m net profit (FY2019). Pandemic disruptions hit hard in FY2020, turning NPAT to a loss as venues were shut during lockdowns. By FY2021, domestic gaming recovered some momentum, aided by insurance and cost cuts (returning to a modest profit). FY2022 saw revenue stagnate ($639m) and a -$33.6m net loss due to prolonged Auckland lockdowns and border closures. A strong rebound occurred in FY2023 with $926m revenue (up 45%) as tourism and on-site activity normalized. Normalised FY2023 NPAT was $138.8m (excluding one-offs), whereas reported NPAT was only $8.0m after heavy one-time charges. In FY2024, revenue essentially flattened (+0.3%), and reported NPAT swung to a large loss due to major impairments and tax adjustments, though underlying profit remained above $120m.
Margins and Cash Flow:
SkyCity’s operating margins are healthy in normal times – e.g. FY2023 saw a normalised EBITDA of $310.3m (32% margin). However, reported EBITDA was halved to $165.9m (18% margin) after extraordinary charges. Net profit margin swung from -5.3% in FY2022 to +15% on a normalised basis in FY2023 (but <1% reported) given those charges. The company remains cash-generative: even during COVID-affected FY2022, it achieved positive EBITDA and managed to resume dividends by FY2023 (6c final). Operating cash flows have been used to fund major capex (NZICC project) and service debt.
Debt Levels:
SkyCity’s balance sheet leveraged up for its expansion projects. Net debt at FY2023 was ~$443m (after significant repayments from earlier asset sales), equating to a net debt/EBITDA of ~1.4x on normalised earnings. However, subsequent investments (buying back a long-term car park lease and continuing NZICC capex) pushed net debt to $663m in FY2024. The debt-to-equity ratio stands around 50%, and interest coverage (EBIT/interest) remains adequate but tightening as interest costs rise and EBITDA was temporarily depressed. The company has suspended dividends in FY2024–FY2025 to prioritize balance sheet strength.
Year-on-Year Trends and Key Ratios
SkyCity’s return on equity (ROE) has been volatile: it was healthy pre-COVID (mid-teens ROE) but turned negative in FY2020–22 due to losses. On an underlying basis, FY2023 ROE was back to ~10% (NPAT $139m on ~$1.3b equity), though reported ROE was negligible given the near-breakeven statutory profit. Return on assets (ROA) similarly dipped (reported ROA <1% in FY2023). EBITDA margin trough was FY2022 (~20%) and has recovered to ~33% normalised. Net profit margin hit a low of -5% in FY2022, rebounding to ~15% normalised in FY2023. Interest coverage improved on a normalised basis (FY2023 EBITDA covered interest ~6x) but under one-off charges was weaker (~2x). Gearing is moderate with debt 52% of equity and net debt/EBITDA returning below 2x as earnings recover. The company’s asset base is significant (>$3 billion total assets including property and casino licenses), giving a solid tangible book value (~NZ$1.24 per share NTA).
Overall, FY2023 marked a turning point with strong operational bounce-back improving all core ratios, although one-off write-downs masked the true earnings power. In FY2024, the company’s normalised trading performance remained relatively steady while reported results took a hit from impairments.
Segment Performance Analysis
By Business Segment:
SkyCity derives the majority of revenue and profit from gaming operations (electronic gaming machines and table games). In FY2023, gaming activity surged with domestic patrons and returning international VIPs, contributing to a real rebound in group revenue. Non-gaming hospitality revenues (hotels, food & beverage, entertainment, conventions) also sharply recovered as visitation to properties increased post-lockdowns. The company does not publicly break out detailed segment financials in its releases, but commentary indicates electronic gaming machine revenue and non-gaming revenue led the rebound, while table game volumes were slower to recover early on. Overall, gaming still provides the bulk of EBITDA, with hospitality segments typically running lower margins but important for attracting customers.
By Geography:
SkyCity’s Auckland property is the key earnings driver, historically contributing over 70% of group EBITDA in pre-COVID years (Auckland boasts the largest casino and hotel portfolio). SkyCity Auckland enjoyed record activity in FY2023 – domestic visitation was strong and international tourism began returning, boosted by events like the Women’s FIFA World Cup. SkyCity Adelaide saw mixed results: gaming (especially electronic machines) and non-gaming revenues grew, aided by events (e.g. Adelaide’s Gather Round AFL and LIV Golf), but cost pressures kept margins in check. The Adelaide property also faced regulatory headwinds. The smaller Hamilton and Queenstown casinos rebounded with local patronage and some international visitors, though their absolute contribution is modest. SkyCity’s online casino (operated offshore) is a nascent segment – FY2023 performance was in line with expectations but faces heavy competition from overseas online operators. In summary, New Zealand operations drove the FY2023 recovery (especially Auckland), while Australia’s contribution was dampened by one-off issues. The company’s new Horizon Hotel and NZICC (Auckland) once open will further boost the conference/events and accommodation segment in coming years.
Post-COVID Recovery Trajectory
SkyCity’s performance has been closely tied to COVID-related restrictions and the re-opening timeline. During 2020–2021, the company endured periodic casino closures and strict capacity limits. International tourism (and VIP gamblers) virtually vanished, forcing SkyCity to rely on domestic gaming. In FY2022, Auckland – its biggest earner – was shut for over three months due to lockdowns, contributing to the full-year loss. The group implemented cost cuts and tapped government wage subsidies in 2021.
The recovery started in 2022 as domestic travel picked up and the NZ border fully reopened in the second half. By FY2023, operations were “trading uninterrupted by Covid lockdown measures”, and international flight capacity steadily improved. This led to higher visitor numbers, additional revenue and profit compared to the pandemic years. Notably, the Auckland property saw strong pent-up demand from both domestic customers and returning tourists/events, driving significant uplift in gaming and non-gaming revenue. Group revenue in FY2023 exceeded even pre-COVID levels (NZ$926m vs ~$820m in 2019), if including GST. However, certain areas remain in recovery mode – international VIP gambling (particularly from Asia) is not yet back to prior volumes, and tourist visitation is still below pre-2019 levels.
The profitability recovery was also clouded by large abnormal expenses in FY2023. Excluding those, the underlying EBITDA and NPAT have essentially normalized to (or even surpassed) pre-pandemic performance, indicating SkyCity has largely recovered its operational footing post-COVID. Management noted that FY2023 benefited from “a year of trading uninterrupted” and focused on efficiency under a new operating model to rebuild margins. Going forward, upside from full tourism return (e.g. Chinese tour groups) and the opening of new venues (NZICC) provides additional post-COVID rebound potential. In FY2024, while underlying revenues remained flat, SkyCity faces the next phase of de-risking its business and navigating an inflationary environment.
Strategic Initiatives and Major Projects
SkyCity has pursued several strategic initiatives in recent years to drive growth and “future-proof” the business:
Major Capital Projects: The NZ International Convention Centre (NZICC) and adjoining Horizon Hotel in Auckland represent a NZ$~700M investment to create a world-class conference and events venue and a new 300-room hotel. Despite construction delays (including a 2019 fire and pandemic disruptions), the Horizon Hotel opened it’s doors in August 2024 with NZICC opening postponed a few times, now scheduled to open only in Feb 2026. These projects will expand SkyCity’s conference/events segment and drive high-margin non-gaming business once operational.
Asset Recycling: In FY2019, SkyCity sold its Darwin casino and Auckland car park concessions, raising ~$450M cash to reduce debt and fund growth. (Notably, in FY2024 it bought back the Auckland car park lease for strategic control, which increased net debt again.) The company has been willing to divest non-core assets and reinvest in core properties.
Digital and Online Gaming: SkyCity launched an online casino platform (SkyCity Online) in 2019, seeking to capture a share of NZ customers playing on offshore gambling sites. The online venture is operated via Malta (to comply with NZ law) and is part of a strategy to hedge against shifting consumer trends. While still small, it is an area of focus given the aggressive marketing by global online operators.
Customer Experience & F&B Upgrades: To keep its properties attractive destinations, SkyCity has invested in refreshed food & beverage offerings and entertainment. In 2023 it opened new premium restaurants (e.g. award-winning Cassia and SkyBar in Auckland, Shanghai Restaurant in Hamilton) and partnered with renowned chefs for upcoming venues. These initiatives aim to enhance the customer experience, drive visitation (especially from locals), and diversify revenue.
Cost Efficiency Program: Post-COVID, SkyCity implemented a new operating model to improve efficiency across gaming and hospitality operations. It has an ongoing transformation programme to “de-risk the business” and trim costs, including strengthening its financial crime compliance (which adds cost but avoids larger penalties). The focus on cost control is evident as underlying EBITDA margin improved significantly in FY2023.
Risk and Compliance Overhaul: In light of regulatory scrutiny (see Risks below), SkyCity established a Group-wide financial crime and compliance enhancement programme, hiring over 80 full-time compliance staff and appointing a new Chief Risk Officer. This strategic initiative is aimed at regaining regulatory confidence and ensuring sustainable operations in all jurisdictions.
These initiatives, combined with the completion of growth projects, are positioning SkyCity for long-term growth in a post-pandemic environment. The company’s strategy is to leverage its strong Auckland franchise, expand its hospitality footprint (hotels/events), and enter new channels (online), while tightening governance to meet rising regulatory expectations.
Comparative Performance and Market Position
Within New Zealand’s hospitality and entertainment sector, SkyCity is a unique player (the only casino operator). It is a constituent of the NZX50 index and as of early 2025 has a market capitalization around NZ$2 billion. Its closest local peers are tourism/hospitality firms (e.g. Tourism Holdings, Auckland Airport) which are not directly comparable. In terms of scale, SkyCity’s NZ$926m revenue in FY2023 far exceeds other NZ-listed hospitality companies (Restaurant Brands had $1.32b sales but across international markets; Millennium & Copthorne had $145m). SkyCity’s EBITDA margins are also generally higher than pure hospitality peers, thanks to the lucrative gaming business – for instance, its normalised EBITDA margin (~32%) is roughly double that of Restaurant Brands (~14% store EBITDA margin).
Internationally, SkyCity can be benchmarked against regional casino operators. Its EV/EBITDA (forward) was around 8–9x in 2023 (depressed by regulatory issues), which is lower than some global peers, reflecting both its smaller size and recent earnings volatility. The P/E ratio is not meaningful on FY2023 reported earnings, but based on normalised earnings (approximately 18.3cps EPS) the stock traded at about 10–12x underlying earnings – a discount, partly due to overhang from investigations. Analysts have noted that structural and cyclical challenges (compliance costs, soft consumer demand) are weighing on SkyCity’s performance and market valuation. Despite the short-term headwinds, the company’s dominant market position in NZ casinos and its recovered cash flows could support a rerating if risks are resolved.
Stock Performance and Valuation Metrics
SkyCity’s share price has been on a rollercoaster. Pre-COVID (2019), SKC traded around NZ$4, then plunged below NZ$2 in the 2020 market crash. It recovered above $3 by late 2021 as domestic business rebounded, but has since been volatile. In 2023–2024, the stock underperformed due to earnings misses and regulatory concerns – by early 2025 it trades around the mid-$2 range. Over a 5-year span, SKC’s total return is deeply negative, reflecting the hit from COVID and delays in its growth projects.
From a valuation standpoint, at NZ$2.50/share (approx), SkyCity’s trailing P/E is extremely high on reported earnings (>>100x for FY2023’s tiny profit), but on normalised earnings it was about 13–14x. Its forward P/E (based on FY2025 guidance) is in the high teens given earnings are expected to dip in FY2024 (a large reported loss occurred in FY2024). The enterprise value (approximately NZ$2.5b including net debt) to EBITDA ratio is around 8x on forward EBITDA, below historical averages. The company resumed dividends in 2023 (6c final) but has since suspended dividends until at least 2026 to conserve cash. This has removed the yield support for the stock.
Investor sentiment has been cautious: analysts in late 2024 rated it “underperform”, citing “subdued consumer confidence, increased compliance costs, and regulatory changes (like mandatory carded play)” that could structurally dampen earnings. Key valuation metrics as of 2025 – EV/EBITDA ~9x, P/B ~1.0x (trading near book value), and no dividend yield – suggest the market is pricing in a fair degree of risk. Upside would depend on successful delivery of NZICC, resolution of regulatory issues, and a return to stable dividends.
ESG and Sustainability Performance
SkyCity has articulated a commitment to sustainability and responsible gaming as part of its corporate strategy. It achieved carbon neutral operations in New Zealand by 2019, with its Adelaide property following in 2020. The company has made good progress in reducing waste and pursuing energy savings, and introduced an ethical sourcing code for all suppliers. These initiatives highlight its focus on environmental responsibility (e.g. purchasing carbon offsets, improving energy efficiency in its large facilities) and social governance.
A crucial ESG aspect for SkyCity is responsible gambling. The company supports host responsibility programs and works with regulators to prevent problem gambling and money laundering. In FY2023, it significantly bolstered its AML/CTF controls, dedicating 80+ FTE staff and creating a new Chief Risk Officer role. While these steps increase compliance costs, they are vital for the social license to operate. SkyCity also contributes to community trusts in Auckland, Hamilton, and Queenstown (funding community projects from a portion of gaming revenue).
On governance, the company faced scrutiny due to the Australian casino industry inquiry (which implicated peers like Crown and Star). SkyCity commissioned independent reviews of its Adelaide casino and is cooperating with regulators. Its willingness to proactively suspend junket programs and tighten controls reflects an effort to align with best-practice governance.
Overall, SkyCity’s ESG reporting is robust – it publishes sustainability reports and has clear targets (e.g. remaining carbon neutral, diversity in leadership, community investment). The key ESG challenge remains maintaining the balance between gaming profitability and responsible entertainment. Any failings in this area pose a reputational and financial risk (as seen with the current regulatory proceedings).
Key Risks, Opportunities, and Outlook
Risks:
SkyCity faces several notable risks. Regulatory risk is front and center – in Australia, AUSTRAC’s anti-money-laundering proceedings led SkyCity to provision A$45M (NZ$49M) in FY2023, and an outcome (fines or license conditions) is pending. In New Zealand, the Gambling Commission temporarily suspended the Auckland casino’s license in late 2023 (stayed pending improvements) due to host responsibility breaches, highlighting domestic regulatory risk. Analysts also warn that mandatory carded play (requiring ID-tracking for gamblers) and other compliance measures could structurally reduce gaming revenue or increase costs. Additionally, cyclical economic risk is a factor: as a discretionary entertainment business, SkyCity is exposed to downturns in consumer spending. Recent data shows a soft economy and cost-of-living pressures weighing on customer spend per visit. Another risk is execution risk on the NZICC project – further delays or cost overruns could hurt credibility and finances. Lastly, competition from online gambling and international casinos means SkyCity must continuously reinvest to keep its offerings attractive.
Opportunities:
Despite the risks, SkyCity has significant growth opportunities. The completion of NZICC and Horizon Hotel in the next 1–2 years will open new revenue streams in conventions, exhibitions, and tourism (positioning Auckland as a conference hub). International tourism recovery (especially from high-value Asian markets) presents upside – as flight capacity increases, SkyCity stands to gain from more international VIP play and tourists visiting its casinos and hotels. There is also opportunity in digital gaming if NZ regulators eventually legalize online casino operations domestically; SkyCity’s early move with its online platform gives it a foothold. The company’s large property footprint in Auckland’s entertainment district provides real estate development optionality (e.g. future hotels, retail, or partnerships on its Federal Street precinct). In addition, if SkyCity successfully navigates compliance issues, it could be well-placed to capitalize on any weaknesses of competitors (with Australian rivals tarnished, SkyCity could capture VIP players or collaborate with international operators under stricter protocols).
Outlook:
In the near term (FY2025), SkyCity’s underlying trading remains solid but profitability is being crimped by high inflation, rising interest costs, and compliance investments. Indeed, the company reported a $143m net loss for FY2024 after significant one-off charges and a “very challenging” environment. Management’s guidance for FY2025 is cautious, with underlying EBITDA expected around $245–265m and no dividend. However, beyond this trough, the outlook improves as one-offs fall away. SkyCity is “confident in the future” and notes positive early 2024 trading in its core businesses. The medium-term strategy is to streamline operations and de-risk (strengthen compliance, reduce debt) while positioning for growth when the NZICC opens and tourism fully rebounds. Key swing factors will be the resolution of the Adelaide inquiry (removing uncertainty) and the macroeconomic trend (a rebound in consumer confidence would lift gaming revenue).
In summary, SkyCity enters 2025 as a leaner company that has weathered COVID and is tackling its regulatory issues head-on. It has significant upside potential from projects and market recovery, but must carefully manage compliance and balance sheet risks. Analysts will be watching execution of its “transformation programme” and the ramp-up of new venues. If successful, SkyCity could re-rate to once again be a steady dividend-paying entertainment stock; if not, it faces a slower climb back to its former glory.
2. Restaurant Brands New Zealand
NZX/ASX: RBD
Restaurant Brands New Zealand (RBD) is a multinational quick-service restaurant (QSR) operator. It is a franchisee of several iconic fast-food brands: KFC, Pizza Hut, Taco Bell, and Carl’s Jr. RBD operates these outlets in New Zealand (its home market) as well as in Australia, Hawaii, Guam, and a small presence in California. As of 2024, the company directly owns and runs ~360 stores, and also oversees additional franchised stores (especially Pizza Huts in NZ). RBD’s business model centers on acquiring territorial franchise rights from global franchisors (such as Yum! Brands for KFC/Pizza Hut/Taco Bell) and then operating stores profitably through local supply chain management, marketing, and operational efficiencies. The revenue comes from food and beverage sales at its restaurants. KFC is the flagship brand (contributing the majority of sales and profit in NZ and Australia), while Pizza Hut (in NZ) and Taco Bell (a newer introduction) are growth brands.
Restaurant Brands benefits from strong brand recognition but has thinner margins and less pricing power compared to casinos or hotels, making cost control and scale crucial. The company has grown by acquisition – e.g. it acquired KFC Hawaii stores in 2016, Australian KFC stores in 2019, and more recently a handful of California stores – transforming from a NZ-only firm a decade ago to a diversified Pacific-wide operator.
Financial Performance
Restaurant Brands saw significant expansion in the late 2010s, with revenue more than doubling from around NZ$740m in FY2015 to over NZ$1.2 billion by 2022.
Revenue Growth:
Restaurant Brands’ revenue has grown strongly overall, driven by acquisitions and new store openings. Total sales crossed the $1 billion mark in 2021, a year which included the first full contribution of its Australia division and continued growth in Hawaii. From 2018 to 2021, revenue (on a like-for-like 12-month basis) grew ~45%. Even during COVID-impacted 2020, the company managed to increase sales (pro forma), testament to the resilience of fast-food demand. In 2022–2023, revenue kept rising to $1,322.2m in 2023 (+6.7% YoY), a record high. By 2024, total store sales reached $1.39b, up another 5.4%.
Profitability and Margins:
While revenue grew, net profit has been volatile and under pressure. From a steady ~$35m NPAT in 2018–2019, profit jumped to $51.9m in 2021 (thanks to sales growth and some COVID-related rent relief) – this was an all-time high for the company. However, inflation and other headwinds saw NPAT plunge to $32.1m in 2022, and further down to $16.3m in 2023. That marks a ~68% earnings drop over two years. The company’s EBITDA margins (store-level) eroded from ~16% in 2020–21 to just 13.5% in 2023, the result of “inflationary pressures on ingredients and wages”. In 1H 2023, margins were especially weak, but management’s price increases and cost controls yielded some margin recovery in 2H. Still, the net profit margin in 2023 was only 1.2%. RBD’s operating profit (EBIT) for 2023 was barely NZ$25m (implied), indicating high depreciation and interest burdens relative to EBITDA. In 2024, net profit rebounded to $26.5m (+62.6%), and store EBITDA improved to $194.3m, suggesting the margin pressures have begun to ease with management actions.
Cash Flow and Debt:
The company generates substantial operating cash flow (e.g. NZ$134m in 2021), but this has been absorbed by capital expenditures on new stores, refurbishments, and acquisitions. RBD took on significant debt for its expansion: by 2023, its net debt-to-equity ratio is ~80–90% (excluding lease liabilities; including lease IFRS16 liabilities, debt/equity exceeds 300%). Interest costs have risen with global rates, contributing to the profit decline. In 1H 2023, higher finance costs notably impacted the NZ division’s results. Facing earnings pressure, the company halted dividends in 2023 (no payout from 2022 earnings aside from a small April 2023 final) to conserve cash. Despite the challenges, RBD remained cash-flow positive and continued to invest in new stores (adding 10 net new stores in the first half of 2023 alone). The interest coverage (EBIT/interest) fell to uncomfortable levels in 2022–2023 as EBIT shrank; however, improved EBITDA in late 2024 has started to alleviate this.
Year-on-Year Trends and Key Ratios
Restaurant Brands’ same-store sales growth and new store additions have been key year-to-year drivers. 2019 was solid with modest same-store growth; 2020 saw disruptions from COVID (store closures during lockdowns) but a surge in delivery/takeaway demand helped recovery by late 2020. In 2021, there was robust growth: total sales +18% and NPAT +72% YoY as economies reopened and the company benefited from scale (plus one-off government subsidies and some rent abatements). The trend reversed in 2022 – although sales rose 16%, NPAT fell 38% due to margin compression. Key ratios illustrate this: ROE which was ~15–20% in 2021 collapsed to single digits in 2022 and ~7% (est.) in 2023. ROA similarly went from ~5% in 2021 to ~2% in 2023. Net profit margin dropped from 4.9% (2021) to 2.6% (2022) to 1.2% (2023). Debt/EBITDA worsened – by 2023 net debt was about 5.0× EBITDA, up from ~3× a few years prior. The current ratio of ~0.4 is low (typical for a fast-food operator with quick inventory turnover and relying on cash sales, but also indicates tight liquidity). RBD’s interest cover in 2023 was only ~2–3×, down from >6× in 2018.
One positive trend: in 2024, there are signs of improvement. The first half of 2024 saw NPAT jump to $12.6m (vs $2.2m in 1H 2023) on 7.3% revenue growth. For the full year 2024, NPAT reached $26.5m (up 62% on 2023) indicating the business is finally recovering profitability after the post-COVID slump. Management commented that “strategic initiatives are beginning to bear fruit” and they see potential for further growth.
Overall, RBD’s financial ratios reflect a low-margin, leveraged business: small changes in cost or sales have outsized effects on net profit. The past two years have been particularly challenging on returns, but recent results indicate a potential inflection towards better profitability.
Segment-by-Segment Performance
Restaurant Brands operates in four geographic segments, which also correspond to brand mixes. Performance varies by region:
New Zealand: largest segment (~35% of 2023 sales). RBD’s NZ operations include ~150 stores (mostly KFC, some Pizza Huts and Taco Bells, and a few Carl’s Jr). In 2023, NZ segment sales grew, but inflation hit NZ especially hard, squeezing margins. RBD cited “ongoing input cost increases in the New Zealand business, surpassing earlier expectations” in 2023. Same-store sales in NZ were up 7.5% in 2023 (helped by price rises and post-lockdown recovery). KFC NZ continues to perform strongly (double-digit growth in 2024 H1). Taco Bell NZ is in rollout phase (several new stores opened, contributing to NZ’s 13.7% sales growth in 2024). NZ profitability was below par in 2022–23 due to wage increases and expensive ingredients. However, cost controls and menu price adjustments in late 2023 improved margins. NZ remains a highly cash-generative division and a platform for testing new concepts.
Australia – second-largest segment (~25–30% of sales). RBD operates KFC restaurants in New South Wales and Queensland (~80 stores). The Australia division has grown via acquisition (buying stores from Yum! Brands) and organic new builds. In 2022–23, Australia delivered steady sales growth (helped by new stores and favorable exchange rates). It has generally higher store EBITDA margins than NZ, partly due to a simpler brand mix (all KFC) and economies of scale. 2023 saw Australian sales rise (in NZD terms) and margins hold relatively firm, though labor shortages and higher input costs were challenges. The acquisition of an additional five KFC stores in Australia contributed to store count and revenue. Australia’s outlook is positive as RBD has white space to open more KFC and Taco Bell outlets (Taco Bell was launched in Australia on a small scale). In 2024, continued store expansion helped drive growth in this segment.
Hawaii (and Guam) – (~20% of sales). RBD’s Hawaii division operates ~75 stores (a mix of KFC and Taco Bell) in Hawaii and Guam. This business was acquired in 2016 and has been a stable contributor. Sales in USD have grown modestly, but NZD-reported sales can fluctuate with the exchange rate. In 2022–23, Hawaii faced softer consumer demand due to inflation and some lingering COVID tourism effects, leading to lower-than-expected sales growth. However, by 2023 the U.S. inflation began to ease, and Hawaii posted improved same-store sales. The strengthening US dollar in early 2023 actually boosted the NZD sales figure by translation. Hawaii’s margin pressure was less severe than NZ’s, but still present. By late 2024, Hawaii showed recovery with better sales trends.
California – (smallest segment, <5% of sales). RBD entered California in 2020 by acquiring some KFC/Taco Bell stores (initially 5 stores, growing to 19 by end of 2021). This venture has struggled. In 2022 and 2023, California underperformed significantly: consumer spending in that region was hit by inflation and perhaps competitive pressures, and RBD had not yet achieved scale efficiency there. The segment incurred operating losses, dragging on group profit. RBD even signaled it was re-evaluating this market. The underperformance in California was one of the reasons for the earnings downgrade in 2023. The company has since focused on improving operations at these stores, but given the small base (only 10-19 stores) any turnaround will only marginally impact group results. California remains an opportunity (as the U.S. fast-food market is huge) but also a risk if losses continue.
Across segments, KFC is the stalwart brand – highly popular in NZ and Australia with strong same-store sales growth and robust margins (KFC typically generates >20% store EBITDA margins). Pizza Hut in NZ has transitioned largely to a franchised model (RBD owns fewer stores now, focusing on master franchisor royalties and a smaller number of key stores). Taco Bell is a growth brand introduced in NZ and Australia starting 2019; it has grown to ~20 stores combined and seen promising sales (double-digit growth in NZ in 2024) though it’s still in investment phase. Carl’s Jr. is a tiny part (handful of stores in NZ) and has struggled to gain traction.
Post-COVID Performance and Recovery
As a food service business, Restaurant Brands was impacted by the pandemic differently than tourism/hotel companies. During strict lockdowns (e.g. NZ’s Level 4 in early 2020), all stores closed, hitting short-term sales. However, fast-food demand rebounded quickly when lockdowns lifted, with consumers shifting to drive-thru and delivery channels. RBD benefited from its predominantly suburban drive-thru format (especially KFC) which allowed relatively safe transactions. In fact, 2020 sales only dipped slightly and by late 2020 were growing year-on-year. The company did face higher operating complexity (social distancing, etc.) and some labor shortages, but managed to stay profitable.
In 2021, despite occasional local restrictions (e.g. an Auckland lockdown in Aug-Sep 2021 closed NZ stores for several weeks), RBD achieved record sales and earnings as economies reopened and the company benefited from scale (plus one-off government subsidies and some rent abatements). The trend reversed in 2022–2023: global inflation (partly stemming from pandemic disruptions and the Ukraine war) drove up ingredient costs (chicken, meat, oil, wheat) and labor expenses. RBD found itself squeezed between rising costs and a consumer base sensitive to price increases. As a result, while COVID-related restrictions faded and sales grew, margins shrank dramatically in the immediate post-COVID period. Essentially, the issue shifted from demand to cost structure. RBD’s experience could be described as a “two-stage” recovery: Stage 1 (2020–21) saw revenue bounce back strongly – the company even grew through COVID by expanding store count. Stage 2 (2022–23) saw an “L-shaped” profit recovery, where earnings fell and stayed low due to the new headwinds. By 2024, margin recovery became more evident, with net profit jumping >60%.
Strategic Initiatives and Recent Investments/Divestments
Restaurant Brands has actively pursued strategies to drive growth and improve profitability:
Brand Portfolio Expansion: A major strategic move was securing the franchise rights for Taco Bell in New Zealand and Australia. The company launched Taco Bell in both countries in late 2019 and has been steadily opening new stores. This taps into a globally popular brand and diversifies RBD beyond chicken. Taco Bell’s early performance has been encouraging (double-digit sales growth in 2024) – the “new brand” strategy aims to replicate RBD’s success with KFC by being the prime operator of Taco Bell as it scales up regionally.
Acquisitions: RBD’s growth has come via acquisitions of existing franchisor-owned stores:
In 2019, it acquired 18 KFC stores in New South Wales, Australia from Yum! Brands, instantly establishing a large Aussie footprint. It also acquired additional KFC stores in Australia and California subsequently.
Store Network Growth and Revamps: RBD consistently invests in new store builds (organically growing the network) and refurbishment of older stores. It added 10 net new stores in the first 6 months of 2023, bringing total owned stores to 377. The company targets regions where demand is strong. The store expansion contributes directly to sales growth. RBD also refurbishes a number of outlets each year to keep them modern and in line with brand image (important for customer experience and efficiency).
Operational Efficiency & Cost Control: Facing margin pressure, RBD rolled out a “strategic programme of price increases and cost control measures” in 2023. This included adjusting menu prices carefully across all markets, looking for procurement savings (leveraging its global scale to negotiate better deals for food and packaging), and optimizing labor scheduling to control wage costs. The company also has an Executive Sustainability Committee that, among other things, focuses on reducing waste and improving efficiency which can reduce costs. In recent years, RBD invested in technology such as automated kitchen equipment and better drive-thru systems to improve throughput.
Digital and Delivery: Recognizing changing consumer behavior, RBD has embraced delivery (via third-party apps) and online ordering. It launched the KFC NZ mobile app and loyalty program, which have been successful in driving repeat business. Although delivery incurs fees, it expands the customer base. The company’s strategic initiative here is to integrate digital ordering seamlessly and use data analytics for targeted marketing (especially for younger Taco Bell customers, etc.). This is a response to the trend of convenience and could bolster sales – indeed digital sales formed a growing portion of revenue post-COVID.
Market Portfolio Management: The California expansion has underperformed, and while not explicitly stated as a divestment, RBD’s strategic focus will be on either fixing or limiting exposure to that market. The Chairman’s statements in 2023 indicated regret over the earnings downgrade but a commitment to “diligently manage” the issues. This suggests a strategic initiative to turnaround underperforming regions.
Overall, RBD’s strategy is growth-oriented: it seeks to grow revenue through geographic expansion and new brand rollout, while fighting margin erosion through efficiency programs. The heavy investments from 2016–2020 built a platform that is now being optimized. The board has shown willingness to pause dividends to prioritize reinvestment and debt reduction when required (as seen in 2023), which is a strategic capital allocation choice to strengthen the company for long term.
Comparative Position and Industry Benchmarks
Restaurant Brands is the only NZX-listed company focused on the quick-service dining segment, so direct local peers are limited. In the NZ market, its competitors are mainly private or global (e.g. McDonald’s NZ is private, Domino’s Pizza NZ is part of an ASX-listed group). RBD’s scale (>$1.3b NZD sales) makes it a major fast-food operator in Australasia. Compared internationally, it is much smaller than the franchisors it represents (e.g. Yum! Brands had US$6.5b revenue in 2022). RBD’s EBITDA margins (~14%) are lower than many peers due to franchise fees and its exposure to high-cost markets like NZ and Hawaii. For instance, Domino’s Pizza Enterprises (an ASX-listed franchisee operating in AU/EU) has EBITDA margins around 20%. This indicates some room for margin improvement if RBD can achieve more efficiencies or push pricing.
In terms of valuation, RBD’s stock suffered a steep decline from its peaks. It traded above NZ$16 in mid-2021 but fell to around NZ$6–7 by late 2023. This reflected the profit downturn and investor sentiment that saw RBD as an “inflation loser.” The P/E ratio became high when earnings halved (the stock at ~$8 with FY2023 EPS ~13c was over 60x). However, with the earnings rebound in 2024, the forward P/E has normalized (at ~$9 share price and ~$0.21 EPS forecast for 2024, P/E ~10–12x) – indicating the market is pricing in further earnings growth beyond 2024. RBD’s EV/EBITDA is around 8–9x (taking enterprise value ~NZ$1.5b including debt and EBITDA ~$194m in 2024). This is somewhat higher than global QSR peers. The premium partly reflects RBD’s higher leverage and lower margins (investors require more growth to justify it).
RBD’s market cap as of early 2025 is roughly NZ$800 million (making it a mid-cap). The company’s share price and valuation metrics are expected to improve if it continues delivering earnings recovery. Analysts and investors will benchmark RBD’s same-store sales growth (low to mid single digits is typical) and EBITDA margin trajectory against QSR peers. Internationally, the fast-food sector has proven defensive in downturns, which is a positive for RBD’s profile.
Stock Performance and Market Valuation
After years of strong gains, RBD’s stock peaked around NZ$17 in mid-2021 (investors were enthusiastic about its international growth). From late 2021 through 2023, the share price steadily declined as input cost inflation eroded profits. By mid-2023, after a profit warning, the stock fell toward NZ$6. It traded around NZ$7–9 in late 2023/early 2024, reflecting improved second-half earnings. Long-term shareholders have still seen solid gains (the stock was ~NZ$3 in 2015), but the recent period was challenging.
In terms of valuation metrics (early 2025):
P/E: Trailing P/E was extremely high (>50x) due to depressed 2023 earnings. Forward P/E (based on 2024 actual $26.5m NPAT, ~21.2c EPS) is around 40x – indicating the market is pricing in further earnings growth beyond 2024.
EV/EBITDA: ~8.5x on 2024’s $194m EBITDA, which is reasonable for a defensive consumer stock, albeit with RBD’s leverage risk.
Dividend Yield: The company did not pay a dividend in 2023, breaking a long history of payouts. Prior to that, it yielded about 2-3%. Management’s focus is on reducing debt, so dividends may remain on hold until profit stabilizes. Analysts expect dividends to resume perhaps by late 2025, but at a lower payout to support debt reduction.
Market sentiment improved in early 2024 after RBD showed margin gains. However, the stock still trades at a discount to its historical valuation multiples. Investors are likely waiting to see a few more quarters of consistent earnings improvement.
ESG Performance and Initiatives
Restaurant Brands has a formal Sustainability Framework under the pillars of “Our People, Our Planet, Our Food.” Key focuses:
Environmental: RBD is working on reducing its environmental footprint through waste management and sustainable packaging. It has partnered with industry groups to optimize packaging and reduce single-use plastics. Energy efficiency in stores (LED lighting, efficient fryers) and waste oil recycling are other focus areas.
Social (People): As a large employer (~11,440 staff as of 2021 across all countries), RBD emphasizes training, diversity, and workplace safety. They report on initiatives like employee development programs and have made efforts to raise the proportion of women and minorities in management.
Governance: RBD’s Board oversees sustainability performance and an Executive Sustainability Committee drives it at the operational level. They integrate sustainability into risk management and have started reporting climate-related risks. The company adheres to NZX governance guidelines.
Food (Product Responsibility): Under the “Our Food” pillar, RBD addresses nutritional transparency and menu innovation. Fast food is often scrutinized for health impacts, so RBD has gradually introduced some healthier options, providing allergen information and ensuring compliance with all food regulations.
Risks, Opportunities, and Outlook
Key Risks:
Restaurant Brands faces a number of risks, including inflation & cost pressures, consumer demand & competition, foreign currency exposure, high leverage, labor relations, and the uncertain performance of new markets like California.
Opportunities:
Further store expansion in NZ/Australia, plus Taco Bell’s rollout, could drive revenue. Margin improvements, digital channels, and potential acquisitions are also possible growth catalysts.
Outlook:
The outlook for Restaurant Brands in the next 1-2 years is cautiously optimistic. The worst of the cost headwinds appears over, as evidenced by improving profit in 2024. The company expects continued sales growth in all markets. Analysts will watch metrics like store-level EBITDA margin and NPAT margin; any improvement there should flow through robustly to the bottom line.
3. Millennium & Copthorne Hotels New Zealand
NZX: MCK
Millennium & Copthorne Hotels New Zealand Limited (MCK) is NZ’s only NZX-listed hotel owner-operator. It operates a portfolio of 18 hotels across New Zealand under three main brands: Millennium Hotels (5-star), Copthorne Hotels (4-star), and Kingsgate Hotels (3-star). These properties cater to a range of market segments, from luxury city hotels to mid-range regional accommodations. MCK’s core business model is owning and operating hotels – earning revenue from room bookings (accommodation), on-site food & beverage outlets, and conferences/events hosted at its hotels. A notable part of MCK’s business (and profit) also comes from its majority-owned subsidiary, CDL Investments New Zealand (NZX: CDI), which is a property development company focusing on residential sections. In effect, MCK has a dual business model: hospitality operations and property development. The hotel side is sensitive to tourism cycles, whereas the property side depends on NZ real estate market conditions. MCK is ~75% owned by CDL Hotels (a subsidiary of Singapore’s City Developments Limited), which provides a strong capital backing and alignment with the global Millennium & Copthorne hotel chain.
The company’s revenue streams break down into: Hotel Revenue (rooms and F&B from NZ hotels), Residential Property Sales (through CDL Investments), and some rental income (MCK owns investment properties, e.g. residential apartments in Australia). For example, in 2022, out of NZ$144.2m revenue, about $65m was from hotel operations and $76m from property sales. This mix can vary year to year. MCK’s business model thus provides diversification: during the pandemic when hotels suffered, its property sales (selling land sections) helped support financial performance. Conversely, as tourism rebounds, the hotel segment contributes more.
Financial Performance
MCK had been consistently profitable pre-COVID, and despite the pandemic it remained in the black (thanks to the property arm). Below is a summary of key financials (NZ$) for the years 2018–2024:
Revenue and Profit Trends:
MCK’s total revenue peaked pre-COVID around NZ$219–230m (2018–2019), with steady profits of ~NZ$50m. In 2020, revenue dropped to NZ$172m due to COVID-19’s impact on hotel occupancy, though property sales via CDL remained strong (yielding a net profit of NZ$48.5m, even higher than 2019). Moving into 2021 and 2022, hotel revenues stayed subdued because international borders were mostly closed, causing NPAT to fall from NZ$40.0m in 2021 to NZ$21.7m in 2022. By 2023, revenue flattened at NZ$145.7m (+1%) with NPAT of NZ$21.6m, indicating the segment mix balanced out but still showed signs of recovery. The pivotal change comes in FY2024, where revenue surged to NZ$176.2m (+21%), driving profit before tax to NZ$47.1m (+25.6%). However, a one-off deferred tax adjustment reduced the reported after-tax figure to NZ$2.8m; excluding that charge, underlying profit after tax was NZ$27.2m, underscoring a strong rebound in hospitality operations.
Segment Performance
Hotels:
As recently as 2022, MCK’s NZ hotel operations had a pre-tax loss of ~NZ$4.0m on NZ$65.2m revenue. Occupancy levels gradually improved (to ~61% in 2023). By FY2024, further occupancy gains (and higher average rates) pushed overall revenue sharply higher, leading to operating profit growth of 32.1% year-on-year. Interim (H1 2024) data showed revenue jumping from NZ$60.05m to NZ$85.32m, with occupancy at 69.0% (up from 59.8% in H1 2023). This momentum carried into the second half, culminating in the 21% annual revenue increase for FY2024. The Sofitel Brisbane Central acquisition (late 2023) also contributed to results, although interest costs partly offset that upside in the short term.
Property (CDI):
CDI (66% owned by MCK) buys and develops residential sections in regions like South Auckland, Hamilton, Canterbury, and Hawke’s Bay. Its profits soared in 2020–2021 amid a booming NZ housing market, offsetting hotel losses. By 2022–23, CDI’s performance dipped slightly as interest rates rose and demand cooled. Although 2024 data for CDI specifically isn’t broken out, commentary suggests stable profit generation but lower volumes. Still, property income remains a robust pillar, helping MCK maintain profitability and fund hospitality expansions (like Sofitel Brisbane).
Australia & Other
In 2022, MCK sold some Sydney apartment units (Zenith Residences), and in December 2023 acquired the Sofitel Brisbane (416 rooms), expanding its hotel footprint internationally for the first time in decades. The Brisbane asset diversifies MCK’s geography and offers potential synergies with the NZ portfolio. Early indications are that Sofitel’s H1 2024 performance was positive, although it also introduced additional debt and interest costs. Over time, MCK expects the 5-star Brisbane property to complement inbound/outbound travel with its NZ hotels.
Margins and Balance Sheet
Historically, MCK’s pure hotel business commanded 20–30% EBITDA margins in normal times. From 2020 to 2022, NZ hotels ran at a net loss. In 2023, MCK saw improvement (e.g. a 69% jump in hotel operating profit), and that trend accelerated into 2024, lifting group operating profit to NZ$42.5m (+32.1% y/y). On a consolidated basis, margins are further boosted by property sales (CDI’s high gross margins).
MCK’s balance sheet remains very strong:
End-2024 assets at NZ$762.3m (+2% from 2023’s NZ$746.8m).
Property assets carried at NZ$694.1m book value, with a fair market valuation ~NZ$1.1b.
Net asset backing of NZ$5.39 per share.
Debt levels are moderate even after the Sofitel purchase; MCK extended a bank facility to NZ$120m to finance expansions. The combination of a low-geared capital structure and robust property valuations underpins MCK’s resilience.
Year-on-Year Trends and Financial Ratios
Hotels: Occupancy crashed (down to ~36% in 2021), then recovered to 43.7% (2022), 61.2% (2023), and near 69% by mid-2024. Average daily rates are also improving, fueling the 21% revenue jump and boosted operating profit in FY2024.
Property: 2020–21 was exceptionally strong. 2022–23 saw plateauing. In 2024, CDI continues to provide stable cash flow, albeit not at peak levels.
Profitability: Net profit margins had ranged ~15–22% pre-COVID. Reported FY2024 NPAT margin was suppressed by the deferred tax charge, but underlying results return MCK closer to historical margins.
Capital Structure: Debt-to-equity stays below 20%; MCK historically uses minimal leverage. This prudence served well during COVID and helps fund expansions (like Sofitel Brisbane) while maintaining financial stability.
Post-COVID Recovery and Current Performance
The pandemic’s blow was softened by CDL’s property profits. As international travel restarted, MCK’s hotel segment rebounded significantly from 2022 to 2024. Interim H1 2024 results showed revenue rising to NZ$85.32m (vs NZ$60.05m in H1 2023), with PBT of NZ$21.53m (vs NZ$11.47m). Occupancy hit 69.0%, up from 59.8%. Though a NZ$25.76m deferred tax liability led to a reported H1 after-tax loss of NZ$11.75m, the underlying H1 NPAT was NZ$12.57m. Full-year numbers confirm the uptrend: FY2024 revenue reached NZ$176.2m, boosting PBT to NZ$47.1m (+25.6%) and operating profit to NZ$42.5m (+32.1%). The deferred tax item reduced the final NPAT to NZ$2.8m, but adjusted profit after tax of NZ$27.2m shows the genuine scope of MCK’s recovery. While CDI sales have cooled, they still generate solid profits, and the Sofitel acquisition opens new growth avenues.
MCK’s management stated 2023’s hotel profit was “creditable” and aimed for a full return to profitability in NZ hotels by 2024; that goal was achieved. Now the focus shifts to sustaining these gains, improving occupancy to pre-COVID ~75%, and fully integrating the Brisbane asset.
Strategic Initiatives and Major Investments/Divestments
MCK’s approach balances conservative capital management with selective opportunities:
Hotel Refurbishment Programme: Ongoing upgrades in Queenstown, Rotorua, Palmerston North to maintain brand and capture higher rates.
Australian Expansion: Acquisition of Sofitel Brisbane diversifies revenue and strengthens trans-Tasman synergy.
Asset Recycling: Disposing non-core assets (like parts of Zenith Residences) to fund expansions.
“Revive and Thrive”: Emphasizes yield management, marketing tie-ups, and brand enhancements.
Capital Management: Low leverage, cautious dividend approach.
ESG and Technology: Potential efficiency upgrades (robotic butlers at M Social, energy-saving refurbishments).
CDI property revenues continue to offset fluctuations in tourism, providing a stable foundation for MCK’s hospitality growth. Over the medium term, returning international travelers should drive further gains, especially as events and corporate travel revive in Auckland and beyond.
Comparative Performance and Industry Position
MCK remains smaller in revenue terms than peers SkyCity or Restaurant Brands, but leverages a hefty property portfolio, low debt, and stable property profits. FY2024 underscores the dual-model success: a 21% revenue jump, strong operating profit, and adjusted net profit that far exceeds the pandemic-lows. MCK’s share price, around NZ$2.20–2.50 in early 2025, is well below the NZ$5.39 asset backing. Limited analyst coverage suggests the market may not fully appreciate MCK’s revived hotel earnings or its property holdings.
Stock Performance and Valuation Metrics
The share price historically ranged NZ$1.70–3.00, dipping under NZ$2 in 2020 but rebounding briefly above NZ$2.50 in late 2021. Slower post-COVID hotel gains in 2022–23 caused a drift. As of early 2025, it hovers in the low NZ$2s. Key metrics:
P/E: Trailing stats skewed by the FY2024 tax adjustment; the underlying NPAT suggests a potential single-digit P/E on adjusted earnings.
EV/EBITDA: Hard to nail down due to property revenue, but historically near ~10x.
P/B: ~0.5x, reflecting the discount to net asset value.
Dividend Yield: Small (~1.5–2%), with sporadic payouts since MCK prioritizes internal investment and stable finances.
Given the meaningful rebound in hotels plus stable property support, there may be scope for re-rating if tourism fully normalizes and the Brisbane asset matures.
ESG Performance and Disclosure
Though less publicized, MCK follows CDL’s sustainability approach:
Environmental: Energy reduction, waste minimization, refurbishment upgrades for efficiency, decreased single-use plastics.
Social: Emphasis on staff well-being and safety (including earlier MIQ roles), community engagement via property development.
Governance: The majority shareholder (CDL) directs strategy, balanced by independent board members for minority interests.
MCK doesn’t release a dedicated ESG report but consistently aligns with parent policies and invests in technology (e.g. robotic butler at M Social Auckland) to enhance guest experience and efficiency.
Key Risks, Opportunities, and Outlook
Risks: Tourism cycles, property market fluctuations, staff shortages, potential natural disasters, and majority control risk.
Opportunities: Full international tourism revival, higher occupancy pushing rates near pre-COVID levels, synergy from the Sofitel Brisbane, and potential property expansions from CDI’s extensive land bank.
Outlook: FY2024’s robust rebound forms a strong foundation for continued hotel segment growth. The property side offers steady returns, even if somewhat off peak, while expansions and refurbishments drive further hospitality upside. If MCK can maintain occupancy/ADR gains and integrate Brisbane effectively, it may see earnings approach or exceed pre-COVID peaks. A market reappraisal of the ~NZ$5.39 net asset backing per share is possible if it sustains these improved results
Looking Ahead
Their financial trajectories for each of the 3 companies differ – SkyCity and RBD experienced more dramatic swings, whereas MCK remained steady – but all three are looking ahead to improved conditions. As the hospitality sector recovers, these companies will be no doubt be keen to seize opportunities while managing the risks that persist. Investors scanning the NZX hospitality sector can use the above deep-dive to understand each company’s strengths, weaknesses, and position in the market as we move into the post-pandemic era of growth.
Hospitality in New Zealand will always be a game of careful navigation, calculated risks, and relentless adaptability. SkyCity’s regulatory dramas, Restaurant Brands’ razor-thin margins, and Millennium & Copthorne’s quiet strength illustrate different survival strategies in a notoriously challenging market.
Investors who understand these nuances, who can see beyond immediate volatility - are the ones poised to capitalize on a hospitality industry that, despite its hardships, remains fundamentally rewarding.
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About the Author
Joshua Thomas is the founder of Hospo HR, an experienced hotelier, and an advocate for New Zealand's vibrant hospitality sector. Always immersed in the latest hospitality trends, news, and updates, his passion stems from his lifelong love as a devoted foodie. Connect with Joshua and his community of hospitality professionals.
