Hawaii hotels statewide concluded 2019 with growth in revenue per available room (RevPAR), average daily rate (ADR), and occupancy compared to 2018. Hawaii hotels had the highest RevPAR and ADR during 2019 in comparison to other top U.S. markets.
According to the Hawaii Hotel Performance Report published by the Hawaii Tourism Authority (HTA), statewide RevPAR rose to $229 (+3.6%), with ADR at $283 (+2.5%) and occupancy of 81.2 percent (+0.9 percentage points) in 2019.
Hawaii Tourism Authority’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 2019, statewide hotel room revenues of $4.49 billion were 1.8 percent higher than in 2018. There were nearly 356,000 fewer available room nights (-1.8%) and more than 111,000 fewer occupied room nights (- 0.7%) compared to a year ago. Several hotel properties across the state were closed for renovation or had rooms out of service for renovation during 2019.
Luxury Class properties reported RevPAR of $431 (+4.0%), with ADR at $567 (+1.9%) and occupancy of 76.0 percent (+1.5 percentage points). Midscale & Economy Class hotels reported RevPAR of $144 (-0.7%), with ADR at $177 (-0.5%) and occupancy of 81.2 percent (-0.2 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 $229 during 2019, followed by New York City at $220 (-3.5%) and San Francisco/San Mateo at $206 (+4.2%). Hawaii also led the U.S. markets in ADR at $283, followed by New York City at $255 (-2.4%) and San Francisco/San Mateo at $251 (+4.1%). The Hawaiian Islands ranked third for occupancy at 81.2 percent, with New York City topping the list at 86.2 percent (-1.0 percentage points), followed by San Francisco/San Mateo at 82.0 percent (+0.1 percentage points).
Hotel Results by County
In 2019, Maui County hotels led Hawaii’s four island counties in RevPAR at $310 (+5.8%), with ADR at $399 (+3.4%) and occupancy of 77.7 percent (+1.7 percentage points).
Oahu hotels earned higher RevPAR of $203 compared to 2018 (+2.5%), with ADR at $241 (+2.0%) and occupancy of 84.2 percent (+0.4 percentage points).
Hotels on the island of Hawaii reported RevPAR growth to $205 (+6.6%), with increases in both ADR to $267 (+3.2%) and occupancy of 77.1 percent (+2.5 percentage points).
Kauai hotels’ RevPAR decreased to $216 (-3.4%), with declines in both ADR to $283 (-1.8%) and occupancy of 76.3 percent (-1.2 percentage points).
Comparison to International Markets
When compared to international “sun and sea” destinations, Hawaii’s counties ranked among the top 10 markets for RevPAR during 2019. Hotels in French Polynesia ranked highest in RevPAR1 at $393 (+7.3%), followed by Maldives at $356 (-0.2%). Maui County ranked third, with Kauai, the island of Hawaii, and Oahu ranked fifth, sixth, and seventh, respectively.
French Polynesia also led in ADR at $566 (+2.9%), followed by Maldives at $542 (+1.8%). Maui County ranked third, with Kauai, the island of Hawaii, and Oahu ranked sixth, seventh, and eighth, respectively.
Oahu led in occupancy for sun and sea destinations, followed by Maui County, the island of Hawaii, and Kauai.
December 2019 Hotel Performance
Hotel performance was strong statewide in December 2019. RevPAR statewide grew to $282 (+12.5%), with ADR at $352 (+6.8%) and occupancy of 80.2 percent (+4.1 percentage points).
Hawaii hotel room revenues statewide increased 11.7 percent to $469.2 million in December. There were nearly 58,000 more occupied room nights (+4.5%) and nearly 13,000 fewer available room nights (-0.8%) compared to a year ago. Several hotel properties across the state were closed for renovation or had rooms out of service for renovation during December. However, the number of rooms out of service may be under-reported.
All classes of hotel properties reported growth in December compared to 2018. Luxury Class properties earned RevPAR of $582 (+10.9%), with ADR at $794 (+4.7%) and 73.3 percent occupancy (+4.1 percentage points). Midscale & Economy Class hotels reported RevPAR of $175 (+13.4%) with ADR at $214 (+6.5%) and occupancy of 81.5 percent (+5.0 percentage points).
In December, Maui County hotels reported the highest RevPAR of all four counties at $415 (+18.4%), which was supported by increases in both ADR to $540 (+7.7%) and occupancy of 76.8 percent (+6.9 percentage points). Maui’s luxury resort region of Wailea reported RevPAR of $760 (+18.7%), with growth in both ADR ($890, +13.7%) and occupancy (85.4%, +3.6 percentage points).
Oahu hotels earned 8.6 percent RevPAR growth to $237, driven by higher ADR ($286, +6.4%) and occupancy of 82.8 percent (+1.7 percentage points). Waikiki hotels reported growth in RevPAR, ADR, and occupancy for December.
Hotels on the island of Hawaii saw increases in RevPAR to $263 (+20.5%), ADR to $330 (+5.9%), and occupancy to 79.5.5 percent (+9.6 percentage points) in December compared to 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 succeeding months.
RevPAR for Kauai hotels was $245 (+3.9%) in December, with growth in occupancy (72.5%, +3.3 percentage points) offsetting slightly lower ADR ($338, -0.8%).