Can I spend my Airpoints Dollars on a hotel booking through your website?
No. While Airpoints members can earn Airpoints Dollars on every hotel booking made through the Air NZ website, we don’t currently offer the ability to spend your Airpoints Dollars for a hotel.
Why can’t I spend my Airpoints Dollars on a hotel booking anymore?
Air New Zealand has entered into a new online partnership with Expedia. This provides customers with a much larger selection of hotels worldwide, as well as confidence with Expedia’s Price Match. While Airpoints members can now earn Airpoints Dollars on every hotel booking made, we don’t currently offer the ability to spend your Airpoints Dollars for a hotel. We are investigating this as a future enhancement.
Full T&C's here,
https://www.airnewzealand.co.nz/expedia-hotels-faq