Demand Increased for Hawaii Vacation Rentals in December

Vacation rentals across Hawaii reported substantial increases in demand, occupancy and average daily rate (ADR) in December 2021 compared to December 2020, however vacation rental supply declined. In comparison to December 2019, ADR was higher in December 2021, but vacation rental supply, demand and occupancy were down.

The Hawaii Tourism Authority (HTA) issued today the Hawaii Vacation Rental Performance Report for the month of December utilizing data compiled by Transparent Intelligence, Inc.

In December 2021, the total monthly supply of statewide vacation rentals was 497,300 unit nights (-19.9% vs. 2020, -42.0% vs. 2019) and monthly demand was 332,900 unit nights (+32.4% vs. 2020, -48.4% vs. 2019) (Figures 1 and 2). That resulted in an average monthly unit occupancy of 66.9 percent (+26.5 percentage points vs. 2020, -8.4 percentage points vs. 2019) for December. Occupancy for Hawaii’s hotels was 72.7 percent in December 2021.

The ADR for vacation rental units statewide in December was $280 (+11.5% vs. 2020, +19.7% vs. 2019). By comparison the ADR for hotels was $419 in December 2021. It is important to note that unlike hotels, units in vacation rentals are not necessarily available year-round or each day of the month and often accommodate a larger number of guests than traditional hotel rooms.

In December, legal short-term rentals were allowed to operate in Maui County and on Oahu, Hawaii Island and Kauai as long as they were not being used as a quarantine location.

In December 2021, domestic passengers 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. Beginning December 6, passengers arriving on direct international flights were subjected to federal U.S. entry requirements which included proof of a negative COVID-19 test result taken within 24 hours of travel or documentation of having recovered from COVID-19 in the past 90 days, prior to their flight.

The data in HTA’s Hawaii Vacation Rental Performance Report specifically excludes units reported in its Hawaii Hotel Performance Report and its Hawaii Timeshare Quarterly Survey Report. A vacation rental is defined as the use of a rental house, condominium unit, private room in private home, or shared room/space in private home. This report does not determine or differentiate between units that are permitted or unpermitted. The legality of any given vacation rental unit is determined on a county basis.

Year-End 2021

In 2021, Hawaii’s statewide vacation rental supply was 6.98 million unit nights, up 15.9 percent compared to 2020 and 31.9 percent lower than 2019 levels. Demand was 4.49 million unit nights (+74.3% vs. 2020; -40.9% vs. 2019), with occupancy of 64.3 percent (+50.3 percentage points vs. 2020; -13.3 percentage points vs. 2019), and ADR at $247 (+3.8% vs. 2020, +19.2% vs. 2019). In comparison, Hawaii hotels were 57.6 percent occupied with ADR at $329 in 2021.

Island Highlights

In December, Maui County had the largest vacation rental supply of all four counties with 171,700 available unit nights (-31.5% vs. 2020, -41.4% vs. 2019). Unit demand was 115,400 unit nights (+10.2% vs. 2020, -50.1% vs. 2019), resulting in 67.2 percent occupancy (+25.5 percentage points vs. 2020, -11.7 percentage points vs. 2019) with ADR at $338 (+21.8% vs. 2020, +21.4% vs. 2019). In comparison, Maui County hotels reported ADR at $736 and occupancy of 68.0 percent.

Oahu vacation rental supply was 144,300 available unit nights (+6.2% vs. 2020, -39.2% vs. 2019) in December. Unit demand was 92,500 unit nights (+47.3% vs. 2020, -48.5% vs. 2019), resulting in 64.1 percent occupancy (+17.9 percentage points vs. 2020, -11.6 percentage points vs. 2019) and ADR at $211 (+3.7% vs. 2020, +10.5% vs. 2019). Oahu hotels reported ADR at $282 and occupancy of 75.0 percent.

The island of Hawaii vacation rental supply was 108,000 available unit nights (-16.3% vs. 2020, -47.2% vs. 2019) in December. Unit demand was 78,000 unit nights (+31.6% vs. 2020, -46.9% vs. 2019), resulting in 72.2 percent occupancy (+26.3 percentage points vs. 2020, +0.4 percentage points vs. 2019) with ADR at $229 (-1.6% vs. 2020, +26.0% vs. 2019). Hawaii Island hotels reported ADR at $489 and occupancy of 73.5 percent.

Kauai had the fewest number of available vacation rental unit nights in December at 73,300 (-30.5% vs. 2020, -39.9% vs. 2019). Unit demand was 46,900 unit nights (+91.9% vs. 2020, -46.5% vs. 2019), resulting in 63.9 percent occupancy (+40.8 percentage points vs. 2020, -7.9 percentage points vs. 2019) with ADR at $361 (+16.7% vs. 2020, +22.9% vs. 2019). Kauai hotels reported ADR at $409 and occupancy of 69.4 percent.