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Articles

Hawaii hotels’ occupancy, revenue down in February 2019.

3/27/2019

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In February 2019, Hawai‘i hotels statewide reported decreases in both average daily rate (ADR) and occupancy, which resulted in lower revenue per available room (RevPAR) compared to February 2018.

According to the Hawai‘i Hotel Performance Report published by the Hawai‘i Tourism Authority (HTA), statewide RevPAR declined to $242 (-4.2%), with ADR of $290 (-1.2%) and occupancy of 83.4 percent (-2.6 percentage points) (Figure 1) in February.

HTA’s Tourism Research Division issued the report’s findings utilizing data compiled by STR, Inc., which conducts the largest and most comprehensive survey of hotel properties in the Hawaiian Islands.

In February, Hawai‘i hotel room revenues fell by 5.6 percent to $360.0 million. There were more than 22,000 fewer available room nights (-1.5%) in February and approximately 58,000 fewer occupied room nights (-4.5%) compared to a year ago (Figure 2). Several hotel properties across the state were closed for renovation or had rooms out of service for renovation during February.

All classes of Hawai‘i hotel properties statewide reported RevPAR declines in February, except Upper Mid-scale Class properties ($149, +2.5%). Luxury Class properties reported RevPAR of $447 (-6.2%) with ADR of $574 (-2.2%) and occupancy of 77.9 percent (-3.4 percentage points). At the other end of the price scale, Mid-scale & Economy Class hotels reported RevPAR of $154 (-10.3%) with ADR of $181 (-6.8%) and occupancy of 85.3 percent (-3.4 percentage points).

Among Hawai‘i’s four island counties, only O‘ahu hotels reported ADR growth for February ($237, +1.2%). This increase was counter-balanced by a 1.0 percentage point decrease in occupancy to 86.4 percent, resulting in no RevPAR growth in February ($205) compared to a year ago.

Maui County hotels reported a decline in RevPAR to $337 (-4.5%) in February but led the state overall. Both ADR ($420, -2.9%) and occupancy (80.3, -1.3 percentage points) decreased year-over-year.

Hotels on the island of Hawai‘i reported a drop in RevPAR to $233 (-13.5%) in February, with lower ADR ($285, -5.8%) and occupancy (81.8%, -7.3 percentage points) compared to February 2018.

Kaua‘i hotels’ RevPAR fell to $230 (-12.3%) in February, with declines in both ADR to $306 (-1.3%) and occupancy to 75.1 percent (-9.4 percentage points).

All of Hawai‘i’s resort regions reported RevPAR and occupancy losses in February. Only Waikīkī properties were able to raise ADR for the month ($232, +1.0%) compared to a year ago.

Tables of hotel performance statistics, including data presented in the report are available for viewing online at: 
www.hawaiitourismauthority.org/research/infrastructure-research/​
​
About the Hawai‘i Hotel Performance Report.
 The Hawai‘i Hotel Performance Report is produced using hotel survey data compiled by STR, Inc., the largest survey of its kind in Hawai‘i. The survey generally excludes properties with under 20 lodging units, such as small bed and breakfasts, youth hostels, single-family vacation rentals, cottages, individually rented vacation condominiums and sold timeshare units no longer available for hotel use. The data has been weighted both geographically and by class of property to compensate for any over and/or under representation of hotel survey participants by location and type.

For February 2019, the survey included 162 properties representing 47,794 rooms, or 89.9 percent of all lodging properties with 20 rooms or more in the Hawaiian Islands, including full service, limited service, and condominium hotels.
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    Jim Hepple is an Assistant Professor at the University of Aruba and is Managing Director of Tourism Analytics.

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