According to the Hawai‘i Hotel Performance Report published by the Hawai‘i Tourism Authority (HTA), the month of June saw RevPAR statewide grow to $236 (+4.2%), with ADR at $280 (+2.2%) and occupancy of 84.1 percent (+1.6 percentage points).
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 June, Hawai‘i hotel room revenues statewide increased 2.5 percent to $382.4 million. There were approximately 3,800 more occupied room nights (+0.3%) and nearly 27,000 fewer available room nights (-1.6%) compared to a year ago). Several hotel properties across the state were closed for renovation or had rooms out of service for renovation during June. However, the number of rooms out of service may be under-reported.
Luxury Class properties led in growth of RevPAR at $443 (+10.4%) in June, which was driven by increases in occupancy to 80.9 percent (+6.6 percentage points) and ADR to $548 (+1.5%). Midscale & Economy Class hotels reported RevPAR of $142 (-3.2%) with ADR at $174 (-1.0%) and occupancy of 81.8 percent (-1.8 percentage points).
In June, Maui County hotels reported the highest RevPAR of all four counties at $318 (+8.1%), which was supported by increases in ADR to $394 (+3.3%) and occupancy of 80.9 percent (+3.6 percentage points).
The performance of O‘ahu hotels in June was similar to a year ago, with RevPAR of $213 (+0.9%), ADR at $243 (+0.9%), and no change in occupancy of 87.9 percent.
Hotels on the island of Hawai‘i saw increases in RevPAR to $196 (+17.2%), ADR to $250 (+5.7%), and occupancy to 78.7 percent (+7.7 percentage points) in June 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 $211 (-7.5%) in June, with declines in both ADR to $279 (-3.9%) and occupancy to 75.7 percent (-3.0 percentage points).
Average room occupancy fell by 1.6 percentage points in the first six months of 2019 to 80.7%.
Through the first six months of 2019, the HTA reported that statewide RevPAR declined by 1.1% to $226, with ADR growing by 0.9% to at $280. Average room occupancy fell by 1.6 percentage points to 80.7% in the first half of 2019.
For the first half of 2019, Hawai‘i hotel room revenues decreased by 2.6 percent to $2.21 billion. There were about 150,000 fewer available room nights (-1.5%) and more than 284,000 fewer occupied room nights (-3.5%) compared to the first half of 2018. Several hotel properties across the state were closed for renovation or had rooms out of service for renovation during the first half of 2019.
Luxury Class properties reported RevPAR of $429 (-1.1%), with ADR at $560 (-0.7%) and occupancy of 76.6 percent (-0.3 percentage points). Midscale & Economy Class hotels reported RevPAR of $145 (-5.8%), with ADR at $176 (-1.7%) and occupancy of 82.0 percent (-3.6 percentage points).
Comparison to Top U.S. Markets
In comparison to other top U.S. markets, hotels in the Hawaiian Islands earned the highest RevPAR at $226 for the first half of 2019, followed by San Francisco/San Mateo at $208 (+8.1%) and New York City at $197 (-3.8%). Hawai‘i also led the U.S. markets in ADR at $280, followed by San Francisco/San Mateo at $256 (+8.7%) and New York City at $237 (-1.8%). The Hawaiian Islands ranked third for occupancy at 80.7 percent, with New York City topping the list at 83.4 percent (-1.7 percentage points).
Hotel Results by County
Through the first six months of 2019, Maui County hotels led Hawai‘i’s four island counties in RevPAR at $316 (+0.8%), with ADR at $402 (+0.8%) and no change in occupancy at 78.6 percent.
O‘ahu hotels earned slightly lower RevPAR of $194 (-0.5%), with ADR at $233 (+0.9%) and occupancy of 83.3 percent (-1.2 percentage points).
Kaua‘i hotels’ RevPAR decreased to $213 (-10.0%), with declines in both ADR to $288 (-1.0%) and occupancy of 74.1 percent (-7.4 percentage points).
Hotels on the island of Hawai‘i reported a decline in RevPAR to $206 (-4.1%), with decreases in both ADR to $267 (-0.4%) and occupancy of 77.0 percent (-3.0 percentage points).
Comparison to International Markets
When compared to international “sun and sea” destinations, Hawai‘i’s counties ranked among the top 10 markets for RevPAR in the first half of 2019. Hotels in the Maldives ranked highest in RevPAR at $414 (+5.0%), followed by French Polynesia at $351 (+9.1%). Maui County ranked third, with Kaua‘i, the island of Hawai‘i, and O‘ahu ranking fifth, seventh and eighth, respectively.
The Maldives also led in ADR at $590 (+0.8%), followed by French Polynesia at $539 (+2.4%). Maui County ranked third. Kaua‘i, the island of Hawai‘i, and O‘ahu ranked sixth, seventh, and eighth, respectively.
O‘ahu led in occupancy for sun and sea destinations in the first half of the year, followed by Maui County, Aruba (78.5%, +2.4 percentage points), the island of Hawai‘i, and Kaua‘i.
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.
For June 2019, the survey included 159 properties representing 48,173 rooms, or 89.2% of all lodging properties with 20 rooms or more in the Hawaiian Islands, including full service, limited service, and condominium hotels.
Jim Hepple is an Assistant Professor at the University of Aruba and is Managing Director of Tourism Analytics.