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Hawaii hotel performance no. 1 in US and top 10 worldwide

First published on eTurboNews: https://www.eturbonews.com/258661/hawaii-hotel-performance-no-1-in-us-and-top-10-worldwide/

In comparison to other top U.S. markets, hotels in the Hawaiian Islands recorded the highest average RevPAR and ADR in the first half of 2019. When compared to international “sun and sea” destinations, Hawaii found itself among the top 10 markets for RevPAR from January through June of this year.

Through the first 6 months of 2019, Hawaii hotels statewide reported flat average daily rate (ADR) and lower occupancy, which resulted in lower revenue per available room (RevPAR) compared to the first half of 2018. However, hotels in the Hawaiian Islands earned the highest RevPAR at $226.

According to the Hawaii Hotel Performance Report published by the Hawaii Tourism Authority (HTA), statewide RevPAR declined to $226 (-1.1%), with ADR at $280 (+0.9%) and occupancy of 80.7 percent (-1.6 percentage points) in the first half of 2019.

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.

For the first half of 2019, Hawaii hotel room revenues decreased by 2.6 percent to $2.21 billion. There were about 150,000 fewer available room nights (-1.5%) and more than 284,000 fewer occupied room nights (-3.5%) compared to the first half of 2018. Several hotel properties across the state were closed for renovation or had rooms out of service for renovation during the first half of 2019.

Luxury Class properties reported RevPAR of $429 (-1.1%), with ADR at $560 (-0.7%) and occupancy of 76.6 percent (-0.3 percentage points). Midscale & Economy Class hotels reported RevPAR of $145 (-5.8%), with ADR at $176 (-1.7%) and occupancy of 82.0 percent (-3.6 percentage points).

Comparison to Top U.S. Markets

With Hawaii ranking at the highest RevPAR for the first 6 months of the year, the Aloha State was followed by San Francisco/San Mateo at $208 (+8.1%) and New York City at $197 (-3.8%). Hawaii also led the U.S. markets in ADR at $280, followed by San Francisco/San Mateo at $256 (+8.7%) and New York City at $237 (-1.8%). The Hawaiian Islands ranked third for occupancy at 80.7 percent, with New York City topping the list at 83.4 percent (-1.7 percentage points).

Hotel Results by County

Through the first six months of 2019, Maui County hotels led Hawaii’s four island counties in RevPAR at $316 (+0.8%), with ADR at $402 (+0.8%) and no change in occupancy at 78.6 percent.

Oahu hotels earned slightly lower RevPAR of $194 (-0.5%), with ADR at $233 (+0.9%) and occupancy of 83.3 percent (-1.2 percentage points).

Kauai hotels’ RevPAR decreased to $213 (-10.0%), with declines in both ADR to $288 (-1.0%) and occupancy of 74.1 percent (-7.4 percentage points).

Hotels on the island of Hawaii reported a decline in RevPAR to $206 (-4.1%), with decreases in both ADR to $267 (-0.4%) and occupancy of 77.0 percent (-3.0 percentage points).

Comparison to International Markets

As far as international markets for RevPar in the first half of 2019, Hawaii’s counties ranked in the top 10. Hotels in the Maldives ranked highest in RevPAR at $414 (+5.0%), followed by French Polynesia at $351 (+9.1%). Maui County ranked third, with Kauai, the island of Hawaii, and Oahu ranking fifth, seventh and eighth, respectively.

The Maldives also led in ADR at $590 (+0.8%), followed by French Polynesia at $539 (+2.4%). Maui County ranked third. Kauai, the island of Hawaii, and Oahu ranked sixth, seventh, and eighth, respectively.

Oahu led in occupancy for sun and sea destinations in the first half of the year, followed by Maui County, Aruba (78.5%, +2.4 percentage points), the island of Hawaii, and Kauai.

June 2019 Hotel Performance

For the month of June, RevPAR statewide grew to $236 (+4.2%), with ADR at $280 (+2.2%) and occupancy of 84.1 percent (+1.6 percentage points). Contributing to this growth, hotels on the island of Hawaii reported significant gains in RevPAR, ADR and occupancy.

In June, Hawaii hotel room revenues statewide increased 2.5 percent to $382.4 million. There were approximately 3,800 more occupied room nights (+0.3%) and nearly 27,000 fewer available room nights (-1.6%) compared to a year ago. Several hotel properties across the state were closed for renovation or had rooms out of service for renovation during June. However, the number of rooms out of service may be under-reported.

Luxury Class properties led in growth of RevPAR at $443 (+10.4%) in June, which was driven by increases in occupancy to 80.9 percent (+6.6 percentage points) and ADR to $548 (+1.5%). Midscale & Economy Class hotels reported RevPAR of $142 (-3.2%) with ADR at $174 (-1.0%) and occupancy of 81.8 percent (-1.8 percentage points).

In June, Maui County hotels reported the highest RevPAR of all four counties at $318 (+8.1%), which was supported by increases in ADR to $394 (+3.3%) and occupancy of 80.9 percent (+3.6 percentage points).

The performance of Oahu hotels in June was similar to a year ago, with RevPAR of $213 (+0.9%), ADR at $243 (+0.9%), and no change in occupancy of 87.9 percent.

Hotels on the island of Hawaii saw increases in RevPAR to $196 (+17.2%), ADR to $250 (+5.7%), and occupancy to 78.7 percent (+7.7 percentage points) in June compared to a year ago. In May 2018, Kilauea volcano started erupting in lower Puna, which contributed to a downturn in visitors to the island of Hawaii in succeeding months.

RevPAR for Kauai hotels fell to $211 (-7.5%) in June, with declines in both ADR to $279 (-3.9%) and occupancy to 75.7 percent (-3.0 percentage points).

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

Read the full article: https://www.eturbonews.com/258661/hawaii-hotel-performance-no-1-in-us-and-top-10-worldwide/

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