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Articles

Hawaii’s hotels report average room occupancy grew by 5.5 percentage points in August to reach 84.3%.

9/19/2019

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According to the Hawai‘i Hotel Performance Report published by the Hawai‘i Tourism Authority (HTA), statewide RevPar increased in August to $244.27 (+ 10.7%), with ADR increasing to $289.75 (+3.4%) and occupancy growing by 5.5 percentage points.

Through the first eight months of 2019 Hawaii’s hotels reported an average room occupancy of 81.7%, down 0.4 percentage points from 82.1% in 2018, with an ADR of $284.74, up 1.8% from 2018, and a RevPar of $232.57 up 1.2% compared with the same eight months of 2018.

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 August, Hawai‘i hotel room revenues statewide grew by 8.6 percent to $408.7 million, which is $32.5 million higher than last year. Room demand was up 5.0 percent to 1.4 million room nights, with supply down 1.8 percent compared to a year ago.  Several hotel properties across the state were closed for renovation or had rooms out of service for renovation during August.

Tables of hotel performance statistics, including data presented in the report are available for viewing online at: https://www.hawaiitourismauthority.org/research/infrastructure-research/

All classes of Hawai‘i hotel properties statewide reported RevPAR gains in August. Luxury Class properties reported a strong increase in RevPAR to $469 (+13.0%), driven by an increase in occupancy to 81.9 percent (+8.9 percentage points) and ADR similar to a year ago. Midscale & Economy Class hotels reported RevPAR of $146 (+8.8%), with ADR of $176 (+2.6%) and occupancy of 82.5 percent (+4.7 percentage points).

Among Hawai‘i’s four island counties, Maui County hotels led the state in RevPAR at $306 (+12.7%), with ADR of $389 (+3.5%) and occupancy of 78.6 percent (+6.5 percentage points) in August. Maui County was led by the strong performance of properties in Wailea, which earned RevPAR of $542 (+9.3%), ADR of $608 (+4.4%) and occupancy of 89.2 percent (+4.0 percentage points).

O‘ahu hotels reported RevPAR growth to $227 (+6.5%) in August, with increases in ADR to $255 (+1.5%) and occupancy of 88.8 percent (+4.2 percentage points). Waikīkī hotels saw RevPAR, ADR and occupancy increases in August.

Hotels on the island of Hawai‘i saw significant increases in RevPAR to $227 (+35.6%), ADR of $281 (+15.8%) and occupancy at 80.9 percent (+11.8 percentage points) in August compared to the same time last year. Kohala Coast hotels earned a 54.5 percent increase in RevPAR to $342, with ADR of $406 (+16.1%) and occupancy of 84.3 percent (+21.0 percentage points). In May 2018, Kīlauea volcano started erupting in lower Puna, which contributed to a downturn in visitors to the island of Hawai‘i in the following months.

Kaua‘i hotels reported flat RevPAR of $213 (+0.2%) in August, with higher occupancy (74.4%, +1.9 percentage points) offsetting a decrease in ADR to $286 (-2.3%).

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 August 2019, the survey included 162 properties representing 48,292 rooms, or 89.5 percent of all lodging properties with 20 rooms or more in the Hawaiian Islands, including full service, limited service, and condominium hotels.
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.  
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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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