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Hawaii Hotels Pulling in More Money than Last 2 Years

How Many More Millions did Hawaii Hotels Earn Last Month?
Hawaii hotels
Written by Linda S. Hohnholz

“The peak summer season ended with August revenue and room rates remaining strong for Hawaii’s hotel industry statewide compared to August 2019,” said John De Fries, HTA president and CEO. “However, the rise in COVID-19 cases and subsequent hospitalizations caused by the Delta variant reminds us that we’re still in a fluid situation as we approach the seasonally slower fall period for travel.”

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  1. Statewide hotel revenue was higher per available room (RevPAR), average daily rate (ADR), and occupancy in August 2021 compared to August 2020.
  2. This is not surprising since 2020 the state had quarantined travelers causing dramatic declines across tourism.
  3. But revenue was even higher this year than in 2019 before COVID-19 was even a factor.

Hawaii hotels statewide reported substantially higher revenue per available room (RevPAR), average daily rate (ADR), and occupancy in August 2021 compared to August 2020 when the State’s quarantine order for travelers due to the COVID-19 pandemic resulted in dramatic declines for the hotel industry. When compared to August 2019, statewide RevPAR and ADR were also higher in August 2021 but occupancy was lower.

According to the Hawaii Hotel Performance Report published by the Hawaii Tourism Authority (HTA), statewide RevPAR in August 2021 was $261 (+639.3%), with ADR at $355 (+124.2%) and occupancy of 73.4 percent (+51.2 percentage points) compared to August 2020. Compared with August 2019, RevPAR was 6.9 percent higher, driven by increased ADR (+22.5%) which offset lower occupancy (-10.7 percentage points).

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 August, the survey included 142 properties representing 45,886 rooms, or 85.0 percent of all lodging properties¹ and 85.6 percent of operating lodging properties with 20 rooms or more in the Hawaiian Islands, including those offering full service, limited service, and condominium hotels. Vacation rental and timeshare properties were not included in this survey.

In August 2021, passengers arriving from out-of-state could bypass the State’s mandatory 10-day self-quarantine if they were fully vaccinated in the United States or with a valid negative COVID-19 NAAT test result from a Trusted Testing Partner prior to their departure through the Safe Travels program. On August 23, 2021, Hawaii Governor David Ige urged travelers to curtail non-essential travel until the end of October 2021 due to the Delta variant resulting in the state’s health care system being overburdened.

Hawaii hotel room revenues statewide rose to $433.4 million (+1,270.6% vs. 2020, +6.1% vs. 2019) in August. Room demand was 1.2 million room nights (+511.4% vs. 2020, -13.4% vs. 2019) and room supply was 1.7 million room nights (+85.4% vs. 2020, -0.8% vs. 2019). Many properties closed or reduced operations starting in April 2020 due to the COVID-19 pandemic. Due to these supply reductions, comparative data for certain markets and prices classes were not available for 2020; and comparisons to 2019 have been added.

Luxury Class properties earned RevPAR of $533 (+3,901.2% vs. 2020, +13.3% vs. 2019), with ADR at $823 (+105.1% vs. 2020, +42.6% vs. 2019) and occupancy of 64.7 percent (+61.4 percentage points vs. 2020, -16.8 percentage points vs. 2019). Midscale & Economy Class properties earned RevPAR of $206 (+399.9% vs. 2020, +45.2% vs. 2019) with ADR at $288 (+121.4% vs. 2020, +68.2% vs. 2019) and occupancy of 71.6 percent (+39.9 percentage points vs. 2020, -11.3 percentage points vs. 2019).

Maui County hotels led the counties in August and achieved RevPAR that surpassed August 2019. RevPAR was $439 (+2,258.2% vs. 2020, +43.6% vs. 2019), with ADR at $596 (+195.6% vs. 2020, +52.0% vs. 2019) and occupancy of 73.6 percent (+64.4 percentage points vs. 2020, -4.3 percentage points vs. 2019). Maui’s luxury resort region of Wailea had RevPAR of $642 (+12.8% vs. 2019²), with ADR at $913 (+45.9% vs. 2019²) and occupancy of 70.3 percent (-20.6 percentage points vs. 2019²). The Lahaina/Kaanapali/Kapalua region had RevPAR of $375 (+6,606.4% vs. 2020, +50.8% vs. 2019), ADR at $491 (+141.1% vs. 2020, +50.7% vs. 2019) and occupancy of 76.3 percent (+73.6 percentage points vs. 2020, +0.1 percentage points vs. 2019).

Hotels on the island of Hawaii reported strong RevPAR growth at $282 (+732.2% vs. 2020, +24.3% vs. 2019), with ADR at $385 (+198.5% vs. 2020, +37.3% vs. 2019), and occupancy of 73.2 percent (+47.0 percentage points vs. 2020, -7.7 percentage points vs. 2019). Kohala Coast hotels earned RevPAR of $444 (+29.8% vs. 2019²), with ADR at $605 (+49.0% vs. 2019²), and occupancy of 73.5 percent (-10.9 percentage points vs. 2019²).

Kauai hotels earned RevPAR of $274 (+886.6% vs. 2020, +31.0% vs. 2019), with ADR at $357 (+116.3% vs. 2020, +25.8% vs. 2019) and occupancy of 76.7 percent (+59.9 percentage points vs. 2020, +3.0 percentage points vs. 2019).

Oahu hotels reported RevPAR of $179 (+305.7% vs. 2020, -21.4% vs. 2019) in August, ADR at $245 (+55.3% vs. 2020, -4.1% vs. 2019) and occupancy of 73.0 percent (+45.0 percentage points vs. 2020, -16.0 percentage points vs. 2019). Waikiki hotels earned $168 (+349.7% vs. 2020, -24.4% vs. 2019) in RevPAR with ADR at $229 (+49.9% vs. 2020, -8.2% vs. 2019) and occupancy of 73.5 percent (+49.0 percentage points vs. 2020, -15.7 percentage points vs. 2019).

Tables of hotel performance statistics, including data presented in the report are available for viewing online here.

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About the author

Linda S. Hohnholz

Linda Hohnholz has been the editor in chief for eTurboNews for many years.
She loves to write and pays attention to details.
She is also in charge of all premium content and press releases.

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