In April 2019, Hawai‘i hotels statewide reported lower revenue per available room (RevPAR), with higher average daily rate (ADR) and lower occupancy compared to April 2018.
According to the Hawai‘i Hotel Performance Report published by the Hawai‘i Tourism Authority (HTA), statewide RevPAR declined to $215 (-0.9%), with ADR of $275 (+2.3%) and occupancy of 78.4 percent (-2.5 percentage points) in April. Through the first four months of 2019 average room occupancy has fallen by 2.7 percentage points from 82.9% in 2018 to 80.2% this year. ADR has increased by 0.6% to $286.41 while revpar has fallen by 2.6%, to $229.79. 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 April, Hawai‘i hotel room revenues fell by 2.4 percent to $349 million. There were more than 25,000 fewer available room nights (-1.5%) in April and nearly 61,000 fewer occupied room nights (-4.6%) 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 April. 1 Among the classes of Hawai‘i hotel properties statewide, only Luxury Class and Upper Mid-scale Class properties reported RevPAR gains in April. Luxury Class properties reported RevPAR of $422 (+1.7%) with ADR of $548 (+0.4%) and occupancy of 77.0 percent (+1.0 percentage points). Upper Mid-scale Class hotels reported RevPAR of $124 (+2.2%) with ADR of $153 (+1.5%) and occupancy of 81.3 percent (+0.6 percentage points). Among Hawai‘i’s four island counties, Maui County hotels led the state in RevPAR ($307, +3.0%) in April. ADR grew to $390 (+3.4%) and occupancy was similar to last year (78.7%, -0.3 percentage points). Maui County was boosted by the strong performance of properties in Wailea, which were 91.3 percent occupied (+1.9 percentage points) with ADR of $601 (+4.5%). Kaua‘i hotels’ RevPAR fell to $201 (-8.1%) in April, with flat ADR of $278 (-0.2%) and lower occupancy of 72.3 percent (-6.3 percentage points). Hotels on the island of Hawai‘i reported a drop in RevPAR to $197 (-4.0%) in April, with growth in ADR ($264, +1.5%) unable to offset lower occupancy (74.6%, -4.2 percentage points). O‘ahu hotels reported lower RevPAR in April ($183, -1.9%) compared to a year ago. Growth in ADR to $229 (+1.2%) was counter-balanced by a 2.5 percentage point decrease in occupancy to 79.9 percent. Tables of hotel performance statistics, including data presented in the report are available for viewing online at: https://www.hawaiitourismauthority.org/research/infrastructure-research/ Properties report rooms as officially out of service to STR if they are unavailable for rent for 30 days or more. However, it should be noted that rooms out of service for renovation for less than 30 days are still included in the Supply numbers presented in Figures 2 and 4 and may be considered overstated. 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 April 2019, the survey included 161 properties representing 48,442 rooms, or 89.7 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. Archives
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