Kaua’i’s hotel-occupancy rate for December (the last full month for which data is available) and full-year 2005 fell compared to same periods in 2004, according to information from Smith Travel Research.
The December Kaua’i occupancy rate was 59.8 percent, down from 61.9 percent in December 2004, and 76.7 percent for full-year 2005, compared to 78.3 percent for full-year 2004.
Average daily room rates and revenue per available room (RevPAR) was up at Kaua’i hotels for both the month and year.
The average daily room rate on Kaua’i in December was $204.78, up from $191.25 in December 2004, with RevPAR at $122.46 in December 2005, up from $118.38 in December 2004, according to a press release from Hospitality Advisors LLC.
The average daily room rate on Kaua’i for all of 2005 was $184.10, up from $177.21 in 2004, with RevPAR at $141.20 for 2005, up from $138.76 in 2004.
Hawai’i’s hotel industry enjoyed an exceptional year in 2005, achieving new records in room revenues, average daily rate, and RevPAR, according to the latest Hawaii Hotel Flash Report released by officials at Hospitality Advisors LLC.
The state’s hotel industry generated over $3.001 billion in room revenues for the year, surpassing the prior record of $2.730 billion set in 2004 by 9.8 percent.
An increase of 1.9 percent in room nights sold combined with a 2.6 percent decline in room supply due to conversions and temporary renovation closures helped statewide ADR improve to a new all-time high of $166.86, or 9.7 percent above 2004 room rates.
Moderate demand growth and lower supply also helped statewide occupancy increase by 3.5 percentage points to 81.2 percent.
Overall, statewide RevPAR increased by 14.6 percent to a record $135.50.
“Much of the year had been characterized by a shift in demand from traditional hotel stays to alternative accommodations, including timeshare and cruise stays,” said Joseph Toy, president of Hospitality Advisors LLC.
Toy stated that the shift in Hawai’i’s inventory mix has also reflected these changes, which has occurred through an increase in property conversions and introduction of new resort condominium and time-share inventory.
“Given Hawai’i’s positive market dynamics and lack of supply-side risk, hotel transactions in Hawai’i continued to be robust in 2005, with eight properties changing ownership with a transaction value of over $1.04 billion,” Toy added.
Hawai’i as a whole enjoyed all-time December highs for the month in ADR of $189.98 and RevPAR of $145.36 in 2005.
Hawai’i hotels generated over $269.9 million in room revenue for a 16.8-percent gain for the month of December 2005. Statewide occupancy improved by 5.4 percentage points to 76.5 percent, while statewide ADR grew by 12.5 percent to $189.98, a new all-time high for the month of December.
Statewide RevPAR also reached a new December record of $145.36, some 21.1 percent higher than the previous record set in 2004.