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Hospitality Booms Across State, Big Island

September 22, 2019, 2:08 PM HST
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Photo by Dave Smith.

The hospitality industry is in the midst of a bounce-back summer, especially on Hawai‘i Island.

In August 2019, Hawai‘i hotels statewide reported growth in revenue per available room (RevPAR), average daily rate (ADR) and occupancy compared to August 2018. However, it should be noted that August 2018’s performance was impacted in part by concerns related to Hurricane Lane, according to a press release from the Hawai‘i Tourism Authority (HTA).

According to the Hawai‘i Hotel Performance Report published by the HTA, statewide RevPAR increased to $244 (+10.7%), with ADR of $290 (+3.4%) and occupancy of 84.3 percent (+5.5 percentage points) in August.

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, the release said.

In August, Hawai‘i hotel room revenues statewide grew by 8.6 percent to $408.7 million, which is $32.5 million higher than last year. Room demand was up 5 percent to 1.4 million rooms, with supply down 1.8 percent compared to a year ago. There were approximately 31,500 fewer available room nights. Several hotel properties across the state were closed for renovation or had rooms out of service for renovation during August, the release said.

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All classes of Hawai‘i hotel properties statewide reported RevPAR gains in August. Luxury Class properties reported a strong increase in RevPAR to $469 (+13%), driven by an increase in occupancy to 81.9 percent (+8.9 percentage points) and ADR similar to a year ago. Midscale & Economy Class hotels reported RevPAR of $146 (+8.8%), with ADR of $176 (+2.6%) and occupancy of 82.5 percent (+4.7 percentage points).

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Hotels on the island of Hawai‘i saw significant increases in RevPAR to $227 (+35.6%), ADR of $281 (+15.8%) and occupancy at 80.9 percent (+11.8 percentage points) in August compared to the same time last year. Kohala Coast hotels earned a 54.5 percent increase in RevPAR to $342, with ADR of $406 (+16.1%) and occupancy of 84.3 percent (+21 percentage points). In May 2018, Kīlauea volcano started erupting in lower Puna, which contributed to a downturn in visitors to the island of Hawai‘i in the following months.

Among Hawai‘i’s four island counties, Maui County hotels led the state in RevPAR at $306 (+12.7%), with ADR of $389 (+3.5%) and occupancy of 78.6 percent (+6.5 percentage points) in August. Maui County was led by the strong performance of properties in Wailea, which earned RevPAR of $542 (+9.3%), ADR of $608 (+4.4%) and occupancy of 89.2 percent (+4 percentage points).

O‘ahu hotels reported RevPAR growth to $227 (+6.5%) in August, with increases in ADR to $255 (+1.5%) and occupancy of 88.8 percent (+4.2 percentage points). Waikiki hotels saw RevPAR, ADR and occupancy increases in August.

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Kaua‘i hotels reported flat RevPAR of $213 (+0.2%) in August, with higher occupancy (74.4%, +1.9 percentage points) offsetting a decrease in ADR to $286 (-2.3%).

Tables of hotel performance statistics, including data presented in the report, are available for viewing online.

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