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Hawaii hotels: Occupancy and revenue up in October

Hawaii hotels: Occupancy and revenue up in October
Hawaii hotels

In October 2019, Hawaii hotels statewide reported growth in revenue per available room (RevPAR), average daily rate (ADR) and occupancy compared to October 2018.

According to the Hawaii Hotel Performance Report published by the Hawaii Tourism Authority (HTA), statewide RevPAR increased to $200 (+4.3%), with ADR at $253 (+1.7%) and occupancy of 79.1 percent (+2.0 percentage points) (Figure 1) in October.

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 October, Hawaii hotel room revenues statewide grew by 3.8 percent to $333.8 million, which is $12.2 million higher than last year. Room demand was up 2.1 percent to 1.3 million rooms, with supply 0.5 percent lower compared to a year ago (Figure 2). Several hotel properties across the state were closed for renovation or had rooms out of service for renovation during October.1

Most classes of Hawaii hotel properties statewide reported RevPAR gains in October. Luxury Class properties reported RevPAR growth to $349 (+3.8%), with increases in both occupancy (+1.5 percentage points) to 74.2% and ADR at $471 (+1.8%). Midscale & Economy Class hotels reported RevPAR of $121 (-6.2%), with higher occupancy of 79.7 percent (+2.2 percentage points) unable to offset lower ADR at $152 (-8.8%).

Among Hawaii’s four island counties, Maui County hotels led the state in RevPAR at $251 (+9.9%), with ADR of $329 (+4.3%) and occupancy of 76.3 percent (+3.9 percentage points) in October.

Oahu hotels reported RevPAR growth to $188 (+2.5%) in October, with increases in ADR to $228 (+0.9%) and occupancy of 82.6 percent (+1.3 percentage points).

Hotels on the island of Hawaii saw significant increases in RevPAR to $177 (+12.0%), ADR at $239 (+2.6%) and occupancy of 74.1 percent (+6.2 percentage points) in October compared to the same time a year ago. In May 2018, Kilauea volcano started erupting in lower Puna, which contributed to a downturn in visitors to the island of Hawaii in the following months.

Kauai hotels reported lower RevPAR of $177 (-10.3%), ADR at $253 (-2.9%) and occupancy of 69.9 percent (-5.7 percentage points) in October.