Hawaii Hotels: Starting the year off strong

Hawaii Hotels: Starting the year off strong

The first month of the year in 2020 shows Hawaii hotels statewide started the year off with a bang. Growth has been reported across the board in revenue per available room (RevPAR), average daily rate (ADR), and occupancy compared to January 2019.

According to the Hawaii Hotel Performance Report published by the Hawaii Tourism Authority (HTA), statewide RevPAR increased to $264 (+11.7%), ADR rose to $314 (+5.6%), and occupancy grew to 84.1 percent (+4.6 percentage points) (Figure 1) in January.

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.

In January, Hawaii hotel room revenues statewide grew by 10.8 percent to $439.4 million. Room demand grew by 5.0 percent, or nearly 66,000 room nights, offsetting the nearly 13,400 fewer available room nights (-0.8%) compared to a year ago (Figure 2).

All classes of Hawaii hotel properties statewide reported higher RevPAR, ADR, and occupancy in January year-over-year. Luxury Class properties earned RevPAR of $493 (+8.9%), with ADR of $645 (+4.9%) and occupancy at 76.6 percent (+2.8 percentage points). Midscale & Economy Class properties earned RevPAR of $179 (+14.5%), with ADR of $204 (+7.6%) and occupancy at 87.6 percent (+5.3 percentage points).

Among Hawaii’s four island counties, Maui County hotels led the state overall in RevPAR at $367 (+11.1%), with increases in both ADR to $478 (+8.8%) and occupancy of 77.2 percent (+1.5 percentage points) in January.

Oahu hotels reported 12.9 percent growth in RevPAR to $223 in January. ADR increased to $254 (+5.7%) and occupancy rose to 88.0 percent (+5.6 percentage points).

Hotels on the island of Hawaii earned RevPAR of $261 (+14.1%) in January, with increases in both occupancy (82.0 percent, +5.2 percentage points) and ADR ($318, +6.9%).

Kauai hotels’ RevPAR grew to $254 (+6.9%) in January, with higher ADR ($322, +0.6%) and occupancy (79.1 percent, +4.6 percentage points).

Among Hawaii’s resort regions, Wailea led for overall RevPAR ($611, +9.4%) and the Kohala Coast led for RevPAR growth ($384, +19.0%).