Hawaii hotels report dramatic decline in revenues and occupancy
Oahu, Maui, Kauai and Hawaii hotels hurt by COVID-19 crisis
In April 2020, Hawaii hotels statewide reported dramatic declines in revenue per available room (RevPAR), average daily rate (ADR), and occupancy compared to April 2019 due to the COVID-19 pandemic.
According to the Hawaii Hotel Performance Report published by the Hawaii Tourism Authority’s (HTA) Tourism Research Division, statewide RevPAR decreased to $12 (-94.5%), ADR fell to $131 (-51.8%), and occupancy declined to 8.9 percent (-69.0 percentage points) (Figure 1) in April.
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.
In April, Hawaii hotel room revenues statewide fell by 97.0 percent to $10.4 million. Room supply was 45.4 percent lower year-over-year (887,200 room nights) and room demand dwindled to 79,100 room nights (-93.7%) (Figure 2). Many properties closed or reduced operations in April. Since March 26, all passengers arriving from out-of-state were required to abide by a mandatory 14-day self-quarantine. The quarantine order was expanded on April 1 to include inter-island travelers.
All classes of Hawaii hotel properties statewide reported lower RevPAR, ADR and occupancy in April compared to a year ago. Performance data for Luxury Class properties were not available for April due to property closures.
Maui County hotels reported RevPAR at $13 (-95.6%), with declines in both ADR to $121 (-68.8%) and occupancy of 11.0 percent (-67.9 percentage points) in April. Data for the month of April was not available for Maui’s luxury resort region of Wailea. The Lahaina/Kaanapali/Kapalua region had RevPAR of $4 (-98.3%), ADR of $90 (-71.9%), and occupancy at 4.6 percent (-73.6 percentage points).
Oahu hotels reported a 93.8 percent drop in RevPAR to $11 in April. ADR decreased to $142 (-37.9%) and occupancy declined to 8.0 percent (-71.9 percentage points). Waikiki hotels earned $8 (-95.7%) in RevPAR with ADR at $141 (-36.7%) and occupancy of 5.4 percent (-74.5 percentage points).
Hotels on the island of Hawaii earned RevPAR of $13 (-93.1%) in April, with declines in both occupancy (12.4 percent, -62.3 percentage points) and ADR ($107, -58.8%). Properties on the Kohala Coast reported declines in RevPAR, ADR and occupancy in April.
Kauai hotels’ RevPAR fell to $9 (-94.8%) in April, with lower ADR ($131, -50.9%) and occupancy (7.0 percent, -59.6 percentage points).