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Hawaii hotels reported substantially higher revenue in April 2021

Hawaii hotels reported substantially higher revenue in April 2021
Hawaii hotels reported substantially higher revenue in April 2021
Written by Harry Johnson

Year-to-date, the statistics for statewide hotel RevPAR and occupancy were much lower compared to the first four months of 2020.

  • Hawaii hotel room revenues statewide rose to $237.2 million (+2,210.8%) in April
  • Luxury Class properties earned RevPAR of $335, with ADR at $720 and occupancy of 46.5 percent
  • Midscale & Economy Class properties earned RevPAR of $148 with ADR at $261 and occupancy of 56.8 percent

In April 2021, Hawaii hotels statewide reported substantially higher revenue per available room (RevPAR), average daily rate (ADR), and occupancy compared to April 2020, which was the first full month of the devastating impact from the COVID-19 pandemic. Hawaii’s quarantine order for travelers due to the COVID-19 pandemic began on March 26, 2020, which immediately resulted in dramatic declines for the hotel industry. Year-to-date, the statistics for statewide hotel RevPAR and occupancy were much lower compared to the first four months of 2020.

According to the Hawaii Hotel Performance Report published by the Hawaii Tourism Authority’s (HTA) Research Division, statewide RevPAR in April 2021 was $153, which was more than 1,000 percent higher than last April. ADR was more than double last year’s level ($300, +138.6%), and occupancy was 50.8 percent (+42.0 percentage points), which would have been disappointing performance pre-pandemic (Figure 1). 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. For April, the survey included 138 properties representing 43,760 rooms, or 81.0 percent of all lodging properties and 84.4 percent of operating lodging properties with 20 rooms or more in the Hawaiian Islands, including full service, limited service, and condominium hotels. Vacation rental and timeshare properties were not included in this survey.

During April 2021, most passengers arriving from out-of-state and traveling inter-county could bypass the State’s mandatory 10-day self-quarantine with a valid negative COVID-19 NAAT test result from a Trusted Testing Partner through the state’s Safe Travels program. All trans-Pacific travelers participating in the pre-travel testing program were required to have a negative test result before their departure to Hawaii. Kauai County rejoined the Safe Travels program on April 5, 2021. The counties of Hawaii, Maui and Kalawao (Molokai) also had a partial quarantine in place in April.

Hawaii hotel room revenues statewide rose to $237.2 million (+2,210.8%) in April. Room demand was 789,800 room nights (+868.5%) and room supply was 1.6 million room nights (+67.3%) (Figure 2). Many properties closed or reduced operations starting in April 2020. If occupancy for April 2021 was calculated based on the pre-pandemic room supply from April 2019, occupancy would be 12.2 percent for the month (Figure 7). Due to these supply reductions, comparative data for certain markets and prices classes were not available for April.

Luxury Class properties earned RevPAR of $335, with ADR at $720 and occupancy of 46.5 percent. Midscale & Economy Class properties earned RevPAR of $148 (+616.2%) with ADR at $261 (+186.8%) and occupancy of 56.8 percent (+34.0 percentage points).

Maui County hotels led the counties in April RevPAR of $300 (+2,220%), with ADR at $483 (+333.5%) and occupancy of 62.1 percent (+50.5 percentage points). Maui’s luxury resort region of Wailea had RevPAR of $420, with ADR at $773 and occupancy of 54.4 percent. The Lahaina/Kaanapali/Kapalua region had RevPAR of $251 (+6,222.4%), ADR at $399 (+407.2%) and occupancy of 62.9 percent (+57.8 percentage points).