The cyclone, which caused damage in Vanuatu's northern islands, re-intensified into a category 3 overnight, with sustained winds of about 150km/h at its centre.
At 6 o'clock this morning, local time, (8am NZT) Hola was about 90 kilometres northeast of Lifou, and is expected to pass close to the island of Mare today.
On Mare, electricity supplies have already been cut off and winds in excess of 100 km/h have been reported as well as swells of six to eight metres.
On the main island, well to the west of the cyclone, as much as 200mm of rain was recorded overnight.