Hawaii Hotels Bring in More Revenue

Hawaii hotels statewide reported substantially higher revenue per available room (RevPAR), average daily rate (ADR), and occupancy in November 2021 compared to November 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 November 2019, statewide ADR was higher in November 2021, but RevPAR was lower due to less occupancy.

According to the Hawaii Hotel Performance Report published by the Hawaii Tourism Authority (HTA), statewide RevPAR in November 2021 was $199 (+277.0%), with ADR at $333 (+42.6%) and occupancy of 59.7 percent (+37.1 percentage points) compared to November 2020 (Figure 1). Compared with November 2019, RevPAR was 3.8 percent lower, driven by lower occupancy (-19.4 percentage points) which could not be offset by increased ADR (+27.5%) (Figure 3).

“While Hawaii’s hotel sector statewide continues so show positive signs of recovery on the leisure travel side, there is still much work to do as the industry focuses on returning to pre-pandemic RevPAR and ADR levels,” said John De Fries, HTA president and CEO. “It is encouraging to see strong demand and growing average daily rates continuing as near the end of the year. This signals Hawaii is on the right path, however, with the Omicron variant cases continuing to rise around the world, the timing for a full recovery remains uncertain.”

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 November, the survey included 145 properties representing 46,602 rooms, or 86.1 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 November 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 Hawai‘i’s Safe Travels program.

Hawaii hotel room revenues statewide rose to $322.4 million (+339.2% vs. 2020, -3.3% vs. 2019) in November. A total of 969,100 room nights (+207.9% vs. 2020, -24.1% vs. 2019) were booked and room supply was over 1.6 million room nights (+16.5% vs. 2020, +0.5% vs. 2019) (Figure 2). Many properties closed or reduced operations starting in April 2020 due to the COVID-19 pandemic.

Luxury Class properties earned RevPAR of $417 (+344.2% vs. 2020, +10.8% vs. 2019), with ADR at $724 (+33.7% vs. 2020, +41.3% vs. 2019) and occupancy of 57.5 percent (+40.2 percentage points vs. 2020, -15.8 percentage points vs. 2019). Midscale & Economy Class properties earned RevPAR of $180 (+283.7% vs. 2020, +36.3% vs. 2019) with ADR at $283 (+68.9% vs. 2020, +74.7% vs. 2019) and occupancy of 63.6 percent (+35.6 percentage points vs. 2020, -17.9 percentage points vs. 2019).

Maui County hotels led the counties in November and achieved RevPAR that surpassed November 2019. RevPAR was $347 (+346.1% vs. 2020, +28.3% vs. 2019), with ADR at $531 (+39.9% vs. 2020, +47.4% vs. 2019) and occupancy of 65.4 percent (+44.9 percentage points vs. 2020, -9.8 percentage points vs. 2019). Maui’s luxury resort region of Wailea had RevPAR of $492 (+280.3% vs. 2020, +5.7% vs. 2019), with ADR at $773 (+43.1% vs. 2020, +40.1% vs. 2019) and occupancy of 63.6 percent (+39.7 percentage points vs. 2020, -20.7 percentage points vs. 2019). The Lahaina/Kaanapali/Kapalua region had RevPAR of $290 (+435.3% vs. 2020, +35.0% vs. 2019), ADR at $439 (+24.4% vs. 2020, +47.2% vs. 2019) and occupancy of 66.1 percent (+50.7 percentage points vs. 2020, -6.0 percentage points vs. 2019).

Hotels on the island of Hawaii reported RevPAR at $249 (+404.6% vs. 2020, +34.6% vs. 2019), with ADR at $354 (+58.5% vs. 2020, +45.0% vs. 2019), and occupancy of 70.3 percent (+48.2 percentage points vs. 2020, -5.4 percentage points vs. 2019). Kohala Coast hotels earned RevPAR of $389 (+463.2% vs. 2020, +43.4% vs. 2019), with ADR at $566 (+50.8% vs. 2020, +62.5% vs. 2019), and occupancy of 68.7 percent (+50.3 percentage points vs. 2020, -9.1 percentage points vs. 2019).

Kauai hotels earned RevPAR of $235 (+289.7% vs. 2020, +26.9% vs. 2019), with ADR at $329 (+52.0% vs. 2020, +32.6% vs. 2019) and occupancy of 71.6 percent (+43.7 percentage points vs. 2020, -3.3 percentage points vs. 2019).

Oahu hotels reported RevPAR of $120 (+208.2% vs. 2020, -35.7% vs. 2019) in November, ADR at $225 (+32.4% vs. 2020, -1.4% vs. 2019) and occupancy of 53.4 percent (+30.5 percentage points vs. 2020, -28.6 percentage points vs. 2019). Waikiki hotels earned $110 (+213.7% vs. 2020, -41.6% vs. 2019) in RevPAR with ADR at $207 (+25.1% vs. 2020, -8.7% vs. 2019) and occupancy of 53.1 percent (+31.9 percentage points vs. 2020, -29.9 percentage points vs. 2019).