New Zealand Hospitality News Roundup: March 2025

Alright team, let's talk March 2025. If you felt the ground shift under your feet last month, you weren't imagining things. It was a non-stop whirlwind of industry highs, policy showdowns, strategic money moves, and new players stepping onto the scene.

For those of us living and breathing NZ hospitality, cutting through the noise to understand what actually matters is crucial. So, consider this your boots-on-the-ground debrief – all the essential intel, no fluff.

Celebrating Our Own

Te Anau's Takes Supreme Gastropub Title

First off, let's toast the winners.

The Estrella Damm Top 50 NZ Gastropubs Awards on March 27th in Auckland was a big night, especially for Te Anau's Fat Duck. Taking home the Supreme Champion title is massive kudos. Huge congrats to co-owners Cam Davies and Selina Wright – the judges rightly called out their smart use of local ingredients, sharp techniques, and that all-important vibe that makes guests feel welcome (Hospitality NZ, Inside Retail). It’s proof positive that top-tier hospitality thrives outside the main centres.

Their win, coupled with bagging Best Lower South Island, puts Te Anau – and frankly, the wider Southland region – firmly on the culinary destination map. It reinforces that trend we're all seeing: guests rewarding authenticity, sustainability, and menus grounded in the region (Inside Retail). It certainly sets a high benchmark.

Celebrating Trailblazing Women in 2025

We also saw the power and talent of women in our sector celebrated at the Third Annual Women in Food & Drink Awards (March 7th, Park Hyatt Auckland). Timed beautifully with International Women’s Day, and driven by Cuisine’s Kelli Brett, this event honoured 50 leaders. Standouts included Judith Tabron (Supreme Woman – true leadership), Ruth Pretty and Catherine Bell (well-deserved Hall of Fame inductions for decades of impact), Melanie Brown (Global Ambassador for her wine prowess), Kaitlin Dawson (Evolving Woman, championing sustainability), and Dr Christina Coker recognised in the new Food Science & Technology category (Hospitality Business). It’s a vital showcase of the diverse expertise women bring, from front-of-house brilliance to behind-the-scenes innovation.

The Policy Arena

$3M Regional Fund & $3M for Business Events

Some welcome news landed on March 27th from Tourism Minister Louise Upston: a $3 million Regional Tourism Boost fund. This is smart money, targeted specifically at driving traffic during the tougher autumn/winter shoulder seasons. Six projects got the nod, receiving between $170k and $680k. Think initiatives like Rotorua targeting Aussies and Great South pitching Southland/Otago to the Gold Coast. Hospitality NZ gave it the thumbs-up, and rightly so – it’s a practical injection to help sustain businesses when visitor numbers typically dip (Scoop).

There was more strategic government spending announced March 10th, with an additional 30 million in direct visitor spend(Hospitality Business). That’s serious potential revenue flowing directly into accommodation, restaurants, and related services.

Industry Pushback: Auckland's 'Bed Tax'

Right, let's cut to the chase on Auckland Council’s proposed 2.5-3% ‘bed tax’. For hoteliers, this feels like a poorly timed headache. Submissions closed late March, and the message from the industry as a whole, via Hospitality NZ and the Hotel Council Aotearoa, was clear: we oppose this specific, Auckland-only levy.

It's not about flatly refusing any visitor contribution. The major sticking point, as our industry bodies stressed, is the chaotic potential of a region-by-region approach. Imagine different rates across the country – confusing for guests, especially international ones travelling around, and a nightmare for us operationally. We need one national structure, done properly ("do it once, do it right," as the Hotel Council's James Doolan put it), not this piecemeal plan that risks our post-COVID recovery.

Some operators and the Mayor are pushing this hard, talking about funding major events like the America's Cup – which, by the way, now seems off the table for Auckland anyway due to lack of government backing, highlighting the political football this has become. They argue it's needed, especially with domestic tourism lagging and a potentially slow winter ahead. But using that as justification to ram through a flawed, Auckland-only tax feels short-sighted. It ignores the operational realities and the risk it poses to our still-fragile recovery. We need sustainable, long-term solutions developed with the industry, not despite it

The industry’s urging the Council and the Government to see sense and work with us on a unified national strategy, not saddle Auckland operators with a poorly designed local fix.

Now, we wait and hope common sense prevails.

TNZ's Strategic Focus on India

Looking globally, the strategic push into India got serious horsepower on March 20th. This isn't just tinkering; it's a high-level play involving PM Luxon and Minister Upston personally, acknowledging India as one of the world's largest outbound markets (projected 5th largest by 2027). The Mumbai winter campaign launch wasn't just talk – Tourism New Zealand inked deals with nine major Indian travel partners (names like MakeMyTrip, Thomas Cook India, SOTC).

That's boots-on-the-ground action opening B2B channels. Critically, Air New Zealand and Air India signed a code-share MOU, immediately improving connectivity via Australia and Singapore across 16 routes. While the much-hoped-for direct flight is still a 'maybe' (being explored "by the end of 2028," dependent on planes and approvals), this immediate access improvement is key. Auckland Airport also signed an MOU with Delhi, signalling infrastructure alignment.

The potential is huge: 80,000 Indian arrivals last year (up 23% on 2019), 18.3M actively considering NZ, and – crucially for our bottom lines – they prefer travelling in our shoulder seasons (March-June, Oct-Nov) and **spend more per trip (5,171). Of course, challenges remain – visa rejection rates (though improving from 29% in 2023) and airfare costs due to limited competition are real hurdles we need addressed. But the commitment, the existing VFR ties, NZ's strong safety image post-COVID, and TNZ's planned follow-up activities (like Kiwi Link India) signal this is a long-term strategic focus (RNZ).

Council Backs Eden Park Redevelopment

Closer to home, the long-running saga of Auckland’s main stadium took another turn in late March. Auckland Council voted decisively (17-2) to endorse Eden Park’s staged redevelopment in principle, essentially giving it the green light over the alternative Te Tōangaroa waterfront proposal. While Hospitality NZ’s Steve Armitage welcomed the clarity, acknowledging Eden Park's crucial role as an economic engine for nearby operators (Hospitality NZ), let's be blunt: this is far from a done deal. Mayor Wayne Brown was clear: this endorsement involves zero ratepayer funding.

The decision throws Eden Park a lifeline, yes, but the privately owned Eden Park Trust now faces the monumental task of "magicking up" hundreds of millions privately to fund even the initial stages – like redeveloping the lower North Stand (potentially seeking ~$110M for just this phase). Forget the full 'Eden Park 2.1' vision with a retractable roof for now; council analysis deemed it financially unfeasible without significant public money. And don't hold your breath for government cash either – Associate Sports Minister Chris Bishop indicated the fiscal environment is tight, and the funding bar would be extremely high.

So, while the Trust sees this as pivotal certainty for planning, and the eventual City Rail Link access (due 2026) is a plus, the stark reality is a massive funding gap. For hospitality operators reliant on stadium events, it’s a case of 'potential recognised, pathway uncertain'. As Councillor Mike Lee wryly noted, after decades of stadium debates, this decision might feel like progress, but the funding question mark looms larger than ever (1 News, NZ Herald).

Market Movers

Beyond policy, the marketplace itself delivered some major headlines.

$180M InterContinental Auckland Sale

The record-breaking transaction that truly sent shockwaves through the market in March was the sale of the InterContinental Auckland. NZX-listed Precinct Properties struck a landmark NZ$180 million deal to sell the newly opened hotel to Singapore Exchange-listed Hotel Properties Limited (HPL). Let’s be clear: this is officially New Zealand's largest-ever single hotel asset sale, setting a new record price per key, and it was all brokered off-market by global giant JLL.

The buyer, HPL, isn't just any player; they're a major owner/operator with interests in 41 hotels across 17 countries, making this their significant first investment into the NZ market. For Precinct, it’s smart capital recycling, allowing them to reduce gearing and reinvest after impressively redeveloping the former One Queen Street tower into this prime asset integrated seamlessly into Commercial Bay (sale conditional on subdivision).

But the bigger picture, emphasised by JLL, is the powerful validation this provides: it confirms NZ, and particularly premium Auckland assets, as highly attractive to sophisticated Asian capital looking to diversify, part of a maturing trend of investment flowing into Oceania. This isn't just a big number; it's a massive vote of confidence in our top-tier hotel sector and Auckland's destination appeal (Hospitality Business, NZ Herald).

Duck Donuts Plans New Zealand Debut

And speaking of new players stepping onto the scene, get ready for a sugar rush: US chain Duck Donuts confirmed it's heading our way. They've inked a master franchise agreement, a significant move marking their first major deal since former CEO Betsy Hamm's departure in January 2025 amid reported corporate changes.

Spearheading the Kiwi rollout are Martin and Anita van der Velden, seasoned operators stepping up from being successful multi-unit franchisees with Bakers Delight. Interim CEO Devon Mailey expressed confidence, stating, "We look forward to seeing them bring our brand to life across New Zealand and deliver the unique Duck Donuts experience." The search for the master franchisee was managed by Iridium Partners with support from the U.S. Commercial Service.

Founded in 2006 and known for its warm, customisable, made-to-order vanilla cake doughnuts (think endless coatings, toppings, and drizzles) alongside coffee, Duck Donuts boasts over 140 US outlets and a dozen international spots. Interestingly, a planned Australian launch announced in 2023 has yet to materialise. Their NZ arrival adds another dynamic layer to the competitive sweet treat landscape, already featuring Dunkin' (19 stores), Krispy Kreme (6 stores), and the recently arrived Cinnabon.

The Bottom Line

So, what's the takeaway from March?

It was a month underscoring the sheer dynamism of NZ hospitality. We celebrated excellence, saw crucial investments aimed at future-proofing growth, grappled with policy decisions that carry real weight for operators, and witnessed significant market confidence reflected in major deals and new brand entries.

It’s complex, it's fast-moving, and staying informed is non-negotiable.

March set a heck of a pace – let’s see what April brings.

——————————————

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.