Hawaii hotels enjoy strong first quarter

HONOLULU – Hawaii hotels statewide enjoyed a robust first quarter to begin 2018, reporting solid increases in revenue per available room (RevPAR), average daily rate (ADR) and room occupancy.

According to the Hawaii Hotel Performance Report released Tuesday by the Hawaii Tourism Authority, RevPAR grew to $243 (up 8.9 percent ) and ADR to $293 (plus 6.9 percent) with occupancy of 82.9 percent (plus 1.5 percentage points) in the first quarter compared to a year ago.

All classes of Hawaii’s hotel properties reported RevPAR growth in the first quarter, with hotels on opposite ends of the spectrum — luxury, midscale and economy — both achieving double-digit increases.

“The first quarter was also the first three-month period in which we realized the full impact of new trans-Pacific air service that was added last year,” said Jennifer Chun, HTA director of tourism research. “The strength of Hawaii’s hotel performance in all island counties was supported by the expansion of air seat capacity to accommodate travel demand.”

Each of the four island counties enjoyed a strong performance by their respective hotel properties in the first quarter. Kauai’s hotels led the state in RevPAR growth to $249 (plus 16.2 percent), boosted by increases in ADR to $306 (plus 13.4 percent) and occupancy of 81.1 percent (plus 2.0 percentage points).

When compared to international “sun and sea” destinations, Hawaii’s hotels performed well in the first quarter. Kauai at $249 (plus 16.2 percent), the island of Hawaii at $243 (plus 14.7 percent), and Oahu at $198 (plus 2.4 percent) ranked sixth, seventh, and eighth, respectively.

“Hawaii’s hotels compete very well against other exotic, tropical destinations,” Chun said.

Hawaii hotels statewide continued their strong start to 2018 with very good results in March, reporting increases in RevPAR to $236 (plus 11.5 percent) and ADR to $289 (plus 7.9 percent), with occupancy of 81.7 percent (plus 2.6 percentage points) compared to a year ago.

“Hotel properties in all four island counties performed very well in March, which helps to strengthen the base of tourism’s benefits across the state,” said Chun. “The results for Kauai and the island of Hawaii are particularly notable. RevPAR was exceptional and ADR was strong in March, but the occupancy rate for both islands far exceeded what was reported the first two months. The impact of new air service being added is reflected in the significant increase in occupancy.”

Kauai hotels earned the state’s highest RevPAR growth in March, increasing to $245 (plus 22.8 percent), which was boosted by ADR of $304 (plus 15.7 percent) and occupancy of 80.7 percent (plus 4.7 percentage points).

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