How did Hawaii hotels perform in 2018?

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Hawaii hotels statewide concluded 2018 with modest increases in revenue per available room (RevPAR) and average daily rate (ADR), and a small decrease in occupancy. According to the Hawaii Hotel Performance Report released today by the Hawaii Tourism Authority (HTA), statewide RevPAR grew to $222 (+4.6%), ADR rose to $278 (+5.1%), and occupancy of 79.8 percent (-0.4 percentage points) was similar in 2018 to 2017.

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.

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All classes of Hawaii hotel properties statewide reported RevPAR growth in 2018. Luxury Class hotels earned higher RevPAR of $415 (+5.3%) and ADR increased to $556 (+6.0%), while occupancy decreased slightly to 74.6 percent (-0.5 percentage points). At the other end of the price spectrum, Midscale & Economy Class properties earned growth in RevPAR to $131 (+8.2%) and ADR to $164 (+8.9%), with occupancy decreasing slightly to 79.6 percent (-0.6 percentage points).

Fewer Available Hotel Room Nights in 2018

There were 6,800 fewer available hotel room nights statewide in 2018 (19.648 million room nights available) compared to 2017 (19.655 million room nights available). Contributing to the decrease in 2018 were the closing of Volcano House and other properties temporarily taking rooms offline for renovations. Rooms out of service for 30 days or more are considered to be closed by STR. Total room demand for 2018 was down 0.5 percent to 15.676 million room nights sold. Total room revenues statewide was $4.36 billion in 2018, up 4.6 percent from 2017.

Comparison to Top U.S. Markets

In comparison to top U.S. markets, the Hawaiian Islands ranked number two in RevPAR at $222, following New York City at $229 (+3.4%). The San Francisco/San Mateo market ranked third at $198 (+4.3%). Hawaii led the U.S. markets in ADR at $278 followed by New York City and San Francisco/San Mateo. The Hawaiian Islands ranked third for occupancy at 79.8 percent, trailing New York City and San Francisco/San Mateo.

Hotel Results for Hawaii’s Four Counties

Hotel properties in Hawaii’s four island counties all reported RevPAR increases for 2018. Maui County hotels led the state overall in RevPAR at $292 (+7.3%), driven by an increase in ADR to $385 (+9.0%), which offset a decrease in occupancy of 75.9 percent (-1.2 percentage points).

Kauai’s hotels led the state in RevPAR growth to $220 (+10.0%), boosted by increases in ADR to $291 (+10.5%), which offset slightly lower occupancy of 75.4 percent (-0.3 percentage points).

Oahu hotels earned an increase in RevPAR to $200 (+2.7%), which was supported by growth in both ADR to $238 (+2.2%) and occupancy of 83.9 percent (+0.4 percentage points).

Hotels on the island of Hawaii reported growth in RevPAR to $189 (+1.3%), driven by an increase in ADR to $261 (+5.0%), which offset decreased occupancy of 72.2 percent (-2.6 percentage points).

Among Hawaii’s resort regions, Wailea led the state in 2018 in RevPAR of $509 (+11.8%), ADR of $585 (+8.7%), and occupancy of 87.1 percent (+2.5 percentage points). Also, on Maui, hotels in the Lahaina-Kaanapali-Kapalua resort area reported growth in RevPAR to $241 (+5.1%), driven by increases in ADR to $322 (+8.6%). Waikiki hotels earned growth in RevPAR to $197 (+2.3%) in 2018 bolstered by a modest increase in ADR to $233 (+2.3%) while occupancy remained flat at 84.3 percent. The Kohala Coast region earned a modest increase in RevPAR to $258 (+0.9%) in 2018, with an increase in ADR to $371 (+6.3%) offsetting a decline in occupancy to 69.6 percent (-3.7 percentage points).

Comparison to International Markets

When compared to international “sun and sea” destinations, Hawaii’s counties were strong competitors in 2018. Hotels in the Maldives ranked highest in RevPAR at $388 (-3.1%) followed by French Polynesia at $371 (+6.9%). Maui County ranked third, with Aruba and Kaua‘i rounding out the top 5.

The Maldives also led in ADR at $596 (-2.7%), followed by French Polynesia at $556 (+11.9%) and Maui County at $385 (+9.0%). Kauai, the island of Hawaii and Oahu ranked sixth, seventh and eighth, respectively.

Oahu led in occupancy for sun and sea destinations at 83.9 percent followed by Maui, Kauai, and Aruba. The island of Hawaii ranked seventh.

Month of December 2018

In December 2018, hotel properties statewide reported no growth in RevPAR at $252 (+0.3%), with growth in ADR to $332 (+4.1%) overshadowing a decline in occupancy of 75.8 (-2.9 percentage points).

Luxury Class hotels earned RevPAR of $526 (-1.3%), with ADR of $759 (+4.3%) and occupancy at 69.3 percent (-4.0 percentage points). Midscale & Economy Class hotels saw an increase in RevPAR to $143 (+3.0%), with strong growth in ADR to $188 (+9.0%) offsetting lower occupancy of 76 percent (-4.4 percentage points).

Among the four counties, Oahu hotels led the state in December in the rate of RevPAR growth at 3.5 percent ($221), with a 3.9 percent increase in ADR ($271) overbalancing flat occupancy of 81.4 percent (-0.3 percentage points). Kauai hotels also reported positive growth in RevPAR to $233 (+0.9%).

Maui County and island of Hawaii hotels both reported declines in RevPAR for December. Maui County hotels declined to $350 (-2.4%), with the drop in occupancy to 69.8 percent (-5.2 percentage points) overshadowing growth in ADR to $501 (+4.9%). Properties on the island of Hawaii reported a decrease in RevPAR to $214 (-8.0%), with the loss in occupancy to 67.9 percent (-8.0 percentage points) offsetting a modest increase in ADR to $316 (+2.9%).

Among the resort regions, Waikiki and Wailea reported RevPAR growth for December 2018. The Kohala Coast and Lahaina/Kaanapali/Kapalua regions reported RevPAR losses in December.

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