Hawaii hotels report substantial declines in revenue and occupancy

In September 2020, Hawaii hotels statewide reported substantial declines in revenue per available room (RevPAR), average daily rate (ADR), and occupancy compared to September 2019 as tourism continued to be impacted significantly by the COVID-19 pandemic.

According to the Hawaii Hotel Performance Report published by the Hawaii Tourism Authority’s (HTA) Research Division, statewide RevPAR decreased to $29 (-85.0%), ADR fell to $149 (-39.5%), and occupancy declined to 19.6 percent (-59.4 percentage points) in September.

The report’s findings utilized data compiled by STR, Inc., which conducts the largest and most comprehensive survey of hotel properties in the Hawaiian Islands.

In September, Hawaii hotel room revenues statewide fell by 91.4 percent to $26.6 million. Room demand was 85.8 percent lower than the same period a year ago. Room supply decreased by 43.0 percent year-over-year. Many properties closed or reduced operations starting in April. During September, all passengers arriving from out-of-state, as well as traveling interisland to the counties of Kauai, Hawaii, Maui, and Kalawao (Molokai), were required to abide by a mandatory 14-day self-quarantine. If occupancy for September 2020 was calculated based on the room supply from September 2019, occupancy would be 11.2 percent for the month.

All classes of Hawaii hotel properties statewide reported RevPAR losses in September compared to a year ago. Luxury Class properties earned RevPAR of $15 (-95.4%), with ADR at $266 (-41.6%) and occupancy of 5.6 percent (-65.2 percentage points). Midscale & Economy Class properties earned the highest RevPAR ($42, -67.5%) among the classes due to comparatively higher occupancy of 36.3 percent (-44.5 percentage points).

All of Hawaii’s four island counties reported lower RevPAR and occupancy. Oahu hotels led the state for RevPAR at $33 (-83.1%) in September, with ADR at $152 (-32.6%) and occupancy of 21.3 percent (-63.6 percentage points).

Waikiki hotels earned $28 (-85.5%) in RevPAR with ADR at $148 (-33.8%) and occupancy of 18.7 percent (-67.0 percentage points).

Maui County hotels earned RevPAR of $24 (-89.4%), with ADR at $149 (-52.9%) and occupancy of 16.5 percent (-56.6 percentage points).

Hotels on the island of Hawaii reported RevPAR of $27 (-82.1%), with occupancy of 20.9 percent (-48.0 percentage points) and ADR at $130 (-41.0%).

Kauai hotels earned RevPAR of $23 (-86.2%) in September, with ADR at $152 (-36.2%) and occupancy of 15.1 percent (-54.5 percentage points).

Comparison to Top U.S. Markets

In comparison to top U.S. markets during the first nine months of 2020, the Hawaiian Islands earned the highest RevPAR at $116 (-49.2%) followed by the Miami/Hialeah market at $95 (-36.3%) and San Francisco/San Mateo at $85 (-59.7%). Hawaii also led the U.S. markets in ADR at $273 (-2.8%) followed by Miami/Hialeah and San Francisco/San Mateo. Tampa/St. Petersburg, Florida topped the country in occupancy at 51.2 percent (-22.6 percentage points), followed by San Diego and Los Angeles/Long Beach, California. The Hawaiian Islands ranked 17th for occupancy at 42.5 percent (-38.8 percentage points).

Comparison to International Markets

When compared to international “sun and sea” destinations, Hawaii’s counties were in the upper half of the group for RevPAR year-to-date. Hotels in French Polynesia ranked highest in RevPAR at $242 (-38.7%) followed by the Maldives, Maui County ($167, -46.3%), Aruba, the island of Hawaii ($113, -44.5%), Kauai ($103, -49.8%) and Oahu ($98, -51.3%).

The Maldives led in ADR at $745 (+39.7%) in the first nine months of 2020, followed by French Polynesia and Maui County ($419, +5.5%). Kauai ($274, -3.3%) the island of Hawaii ($255, -3.2%), and Oahu ($224, -6.2%) ranked sixth, seventh, and eighth, respectively. The island of Hawaii led in occupancy for sun and sea destinations year-to-date (44.3%, -33.0 percentage points), followed by Oahu (43.9%, -40.7 percentage points), French Polynesia, Maui County (39.9%, -38.5 percentage points) and Kauai (37.8%, -34.9 percentage points).