Maui, Kauai, Oahu drive hotel performance

LIHUE — Hawaii hotels statewide reported a 3.6 percent increase in revenue per available room (RevPAR) to $248 in July 2018, according to the Hawaii Hotel Performance Report released Wednesday by the Hawaii Tourism Authority.

This growth was driven by a 4.9 percent increase in average daily rate (ADR) to $296, which offset a slight decline in occupancy (-1.0 percentage points to 83.8 percent). Statewide, all classes of hotel properties reported higher RevPAR and ADR in July, along with declines in occupancy, compared to a year ago.

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.

Jennifer Chun, HTA tourism research director, noted, “The state’s positive hotel results in July were driven by the performance of properties in Maui County, Kauai and Oahu. This offset the declines reported by hotels on the island of Hawaii, as these properties continued to be negatively impacted by the Kilauea volcano eruption.

“July is one of Hawaii’s peak travel months and while statewide hotel occupancy was very good at 83.8 percent, it was a little disappointing to see a decline compared to a year ago.”

Of the four island counties, Maui County hotels reported the highest RevPAR at $328 (+10.1 percent) in July, fueled by strong ADR growth to $404 (+8.8 percent) and a small increase in occupancy to 81.2 percent (+0.9 percentage points).

Kauai hotels also reported impressive growth in July, earning a 9.6 percent increase in RevPAR to $248, which was boosted by ADR of $315 (+8.1 percent) and occupancy of 78.8 percent (+1.0 percentage points), she said.

The overall outlook for Hawaii’s hotel industry for the balance of 2018 and all of 2019 is positive, according to forecasts released by STR, Inc., which, in conjunction with economists at the consulting firm Tourism Economics, produces market forecasts for hotel performance.

Hawaii’s hotels statewide are expected to end 2018 with RevPAR of $226 (+6.3 percent), with the increase resulting from ADR of $279 (+5.5 percent) and slightly higher occupancy of 80.9 percent (+0.7 percentage points) compared to what was reported in 2017 (Figure 8).

This upward trend statewide is projected to continue in 2019.

Chun commented, “The forecasts are rate-driven with continued growth in RevPAR and ADR anticipated for all island counties through the end of 2019. This year, Maui County and Kauai are expected to continue doing well, Oahu to finish with modest growth, and the island of Hawaii to improve in the fourth quarter. In 2019, all island counties are projected to realize continued growth in RevPAR and ADR.”

The forecast calls for Kauai properties to earn the highest rates of growth for RevPAR and ADR in both 2018 and 2019 among the island counties. Kauai hotels are projected to end 2018 with RevPAR of $225 (+12.4 percent), ADR of $291 (+10.3 percent) and occupancy of 77.2 percent (+1.5 percentage points). In 2019, Kauai hotels are forecasted to have increases in RevPAR to $241 (+7.5 percent) and ADR to $311 (+6.7 percent), with occupancy of 77.5 percent (+0.5 percentage points).

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