Why hotel rates in Hawaii are now more expensive?

The cost for a hotel in Waikiki, Maui or Kauai has been going up. The Hawaii Tourism Authority (HTA)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.



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The trend for Hotel room costs in Hawaii is on an upswing, which is good news for hotels and bad news for visitors.

Through the first nine months of 2019, Hawaii hotels statewide reported slight growth in both revenue per available room (RevPAR) and average daily rate (ADR) compared to the same period in 2018. In fact, Hawaii hotels had the highest RevPAR and ADR through the first three quarters of 2019 when compared to other top U.S. markets.

According to the Hawaii Hotel Performance Report published by the Hawaii Tourism Authority (HTA) , statewide RevPAR rose to $228 (+1.5%), with ADR at $281 (+1.9%) and occupancy of 81.3 percent (-0.3 percentage points) year-to-date through September 2019.

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.

Year-to-date through September 2019, statewide hotel room revenues of $3.37 billion were similar to the same period in 2018. There were nearly 230,000 fewer available room nights (-1.5%) and slightly more than 226,000 fewer occupied room nights (-1.9%) compared to a year ago. Several hotel properties across the state were closed for renovation or had rooms out of service for renovation during the first three quarters of 2019.

Luxury Class properties reported RevPAR of $433 (+3.2%), with ADR at $560 (+1.0%) and occupancy of 77.4 percent (+1.6 percentage points). Midscale & Economy Class hotels reported RevPAR of $144 (-2.6%), with ADR at $176 (-0.7%) and occupancy of 81.8 percent (-1.6 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 $228 for the first nine months of 2019, followed by San Francisco/San Mateo at $211 (+3.4%) and New York City at $207 (-3.2%). Hawaii also led the U.S. markets in ADR at $281, followed by San Francisco/San Mateo at $254 (+4.3%) and New York City at $243 (-1.9%). The Hawaiian Islands ranked third for occupancy at 81.3 percent, with New York City topping the list at 85.4 percent (-1.1 percentage points).

Hotel Results by County

Through the first nine months of 2019, Maui County hotels led Hawaii’s four island counties in RevPAR at $311 (+4.0%), with ADR at $397 (+2.6%) and occupancy of 78.4 percent (+1.1 percentage points).

Oahu hotels earned slightly higher RevPAR of $201 (+0.9%), with ADR at $238 (+1.2%) and occupancy of 84.5 percent (-0.3 percentage points).

Hotels on the island of Hawaii reported RevPAR growth to $204 (+3.7%), with increases in both ADR to $264 (+2.7%) and occupancy of 77.1 percent (+0.8 percentage points).

Kauai hotels’ RevPAR decreased to $209 (-8.9%), with declines in both ADR to $284 (-1.8%) and occupancy of 73.6 percent (-5.7 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 in the first nine months of 2019. Hotels in French Polynesia ranked highest in RevPAR at $395 (+7.9%), followed by Maldives at $351 (+1.7%). Maui County ranked third, with Kauai, the island of Hawaii, and Oahu ranked fifth, sixth, and seventh, respectively (Figure 7).

French Polynesia also led in ADR at $566 (+2.1%), followed by Maldives at $528 (+0.7%). Maui County ranked third, with Kauai, the island of Hawaii, and Oahu ranked sixth, seventh, and eighth, respectively (Figure 7).

Oahu led in occupancy for sun and sea destinations, followed by Maui County, the island of Hawaii, Aruba (76.2%, +0.8 percentage points),and Kauai (Figure 8).

September 2019 Hotel Performance

For the month of September, RevPAR statewide grew to $193 (+4.4%), with ADR at $247 (+3.2%) and occupancy of 78.2 percent (+0.9 percentage points) (Figure 9).

Hawaii hotel room revenues statewide increased 3.3 percent to $313.1 million in September. There were approximately 800 more occupied room nights (+0.1%) and nearly 18,000 fewer available room nights (-1.1%) compared to a year ago (Figure 10). Several hotel properties across the state were closed for renovation or had rooms out of service for renovation during September. However, the number of rooms out of service may be under-reported.

Luxury Class properties led in growth of RevPAR at $329 (+9.7%) in September, which was driven by increases in occupancy to 72.1 percent (+3.8 percentage points) and ADR to $456 (+3.9%). Midscale & Economy Class hotels reported RevPAR of $131 (+3.5%) with ADR at $164 (+1.4%) and occupancy of 79.8 percent (+1.6 percentage points).

In September, Maui County hotels reported the highest RevPAR of all four counties at $232 (+7.5%), which was supported by increases in both ADR to $319 (+4.9%) and occupancy of 72.7 percent (+1.7 percentage points). Maui’s luxury resort region of Wailea reported RevPAR of $380 (+4.4%), with ADR growth ($461, +7.5%) offsetting lower occupancy (82.4%, -2.4 percentage points).

Oahu hotels earned 2.4 percent RevPAR growth to $191, driven by higher ADR ($227, +2.4%) and no change in occupancy of 84.1 percent. Waikiki hotels reported growth in RevPAR, ADR, and occupancy for September.

Hotels on the island of Hawaii saw increases in RevPAR to $150 (+20.9%), ADR to $222 (+8.6%), and occupancy to 67.5 percent (+6.8 percentage points) in September 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 fell to $165 (-9.9%) in September, with declines in both ADR to $241 (-4.0%) and occupancy to 68.6 percent (-4.5 percentage points).

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https://www.eturbonews.com/341953/why-hotel-rates-in-hawaii-are-now-more-expensive/

 

Source: eTurboNews

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