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Articles

Hawaii’s hotels saw average room occupancy grow by 0.9 percentage points in September to 78.2%.

10/22/2019

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According to the Hawai‘i Hotel Performance Report, published by the Hawai‘i Tourism Authority (HTA), the month of September saw RevPAR grow by 4.4% to $193 statewide, with ADR growing by 3.2% to $247 and occupancy up by 0.9 percentage points to 78.2 percent.

The 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.

Hawai‘i hotel room revenues statewide increased 3.3 percent to $313.1 million in September. There were approximately 800 more occupied room nights (+0.1%) and nearly 18,000 fewer available room nights (-1.1%) compared to a year ago. Several hotel properties across the state were closed for renovation or had rooms out of service for renovation during September. However, the number of rooms out of service may be under-reported.

Luxury Class properties led in growth of RevPAR at $329 (+9.7%) in September, which was driven by increases in occupancy to 72.1 percent (+3.8 percentage points) and ADR to $456 (+3.9%). Midscale & Economy Class hotels reported RevPAR of $131 (+3.5%) with ADR at $164 (+1.4%) and occupancy of 79.8 percent (+1.6 percentage points).

In September, Maui County hotels reported the highest RevPAR of all four counties at $232 (+7.5%), which was supported by increases in both ADR to $319 (+4.9%) and occupancy of 72.7 percent (+1.7 percentage points). Maui’s luxury resort region of Wailea reported RevPAR of $380 (+4.4%), with ADR growth ($461, +7.5%) offsetting lower occupancy (82.4%, -2.4 percentage points).

O‘ahu hotels earned 2.4 percent RevPAR growth to $191, driven by higher ADR ($227, +2.4%) and no change in occupancy of 84.1 percent. Waikīkī hotels reported growth in RevPAR, ADR, and occupancy for September.

Hotels on the island of Hawai‘i saw increases in RevPAR to $150 (+20.9%), ADR to $222 (+8.6%), and occupancy to 67.5 percent (+6.8 percentage points) in September compared to a year ago. In May 2018, Kīlauea volcano started erupting in lower Puna, which contributed to a downturn in visitors to the island of Hawai‘i in succeeding months.

RevPAR for Kaua‘i hotels fell to $165 (-9.9%) in September, with declines in both ADR to $241 (-4.0%) and occupancy to 68.6 percent (-4.5 percentage points).

September Year to Date.
Through the first nine months of 2019, Hawai‘i hotels statewide reported RevPAR growing by 1.5% to $228, with ADR up by 1.9% to $281 although occupancy fell by 0.3 percentage points to 81.3 percent.

Year-to-date through September 2019, statewide hotel room revenues of $3.37 billion were similar to the same period in 2018.

There were nearly 230,000 fewer available room nights (-1.5%) and slightly more than 226,000 fewer occupied room nights (-1.9%) compared to a year ago. Several hotel properties across the state were closed for renovation or had rooms out of service for renovation during the first three quarters of 2019.

Luxury Class properties reported RevPAR of $433 (+3.2%), with ADR at $560 (+1.0%) and occupancy of 77.4 percent (+1.6 percentage points). Midscale & Economy Class hotels reported RevPAR of $144 (-2.6%), with ADR at $176 (-0.7%) and occupancy of 81.8 percent (-1.6 percentage points).

Hotel Results by County
Through the first nine months of 2019, Maui County hotels led Hawai‘i’s four island counties in RevPAR at $311 (+4.0%), with ADR at $397 (+2.6%) and occupancy of 78.4 percent (+1.1 percentage points).

O‘ahu hotels earned slightly higher RevPAR of $201 (+0.9%), with ADR at $238 (+1.2%) and occupancy of 84.5 percent (-0.3 percentage points).

Hotels on the island of Hawai‘i reported RevPAR growth to $204 (+3.7%), with increases in both ADR to $264 (+2.7%) and occupancy of 77.1 percent (+0.8 percentage points).

Kaua‘i hotels’ RevPAR decreased to $209 (-8.9%), with declines in both ADR to $284 (-1.8%) and occupancy of 73.6 percent (-5.7 percentage points).

Tables of hotel performance statistics, including data presented in the report are available for viewing online at: https://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.
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For September 2019, the survey included 162 properties representing 48,212 rooms, or 89.3 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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