State, Big Island Hotel Revenue Rising Toward Pre-Pandemic Levels
Hawai‘i hotels statewide reported substantially higher revenue per available room, average daily rate, 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 average daily rate, or ADR, was higher in November 2021, but revenue per available room, or RevPAR, was lower due to less occupancy.
On the Big Island, the numbers were up mostly across the board.
Statewide, RevPAR in November 2021 was $199, up 277.0%, with ADR at $333, plus 42.6%, and occupancy of 59.7%, which was up 37.1% compared to November 2020, according to the Hawai‘i Hotel Performance Report published by the Hawaii Tourism Authority.
#Hawaii’s #hotel industry continues to flourish as pent-up demand for travel brings more people to the islands of Hawaii. RevPAR has skyrocketed a remarkable 441.1% YOY from 30.95 in Q3 2020 to $167.46 in Q3 2021.https://t.co/jNIUpChW2d@CBREHotels @cbrecapitalmkts pic.twitter.com/ks2uqs4HvH
— CBRE Hawaii (@CBREHawaii) December 17, 2021
But compared with November 2019, RevPAR was 3.8% lower, driven by lower occupancy (-19.4%) which could not be offset by increased ADR (+27.5%).
“While Hawai‘i’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, in a press release issued Dec. 21. “It is encouraging to see strong demand and growing average daily rates continuing as near the end of the year. This signals Hawai’i 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.
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, which made travel less restrictive.
Hawai‘i 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).
The increase in travel was reflected in Hawai‘i Island’s numbers compared to the year before.
Hotels on the Big Island 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% (+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).
Tables of hotel performance statistics, including data presented in the report are available for viewing online here.