Hawaii hotels lead nation in room revenue

LIHUE — Through the first three quarters of 2018, Hawaii hotels statewide reported modest increases in revenue per available room (RevPAR) and average daily rate (ADR) with flat occupancy, all of which kept the Hawaiian Islands competitive with other domestic and international markets.

According to the Hawaii Hotel Performance Report issued Monday by the Hawaii Tourism Authority, RevPAR in the Hawaiian Islands increased to $225 (plus 6.1 percent), ADR grew to $278 (plus 5.7 percent), with occupancy staying flat at 81 percent (plus 0.3 percentage points) in the first three quarters compared to last year.

“The increases in RevPAR and ADR through nine months are due to the strong performance that Hawaii hotels realized in the first half of the year,” said Jennifer Chun, HTA tourism research director.

All classes of Hawaii’s hotel properties reported RevPAR growth in the first three quarters of 2018.

Compared to other top U.S. markets, the Hawaiian Islands ranked first in RevPAR at $225 (plus 6.1 percent) through three quarters, a period in which U.S. hotels nationwide reported RevPAR growth. New York City ranked second at $215 (plus 3.5 percent).

The Hawaiian Islands also led the U.S. markets in ADR at $278 (plus 5.7 percent), again followed by New York City at $248 (plus 2.5 percent).

The Hawaiian Islands ranked third for occupancy at 81 percent (plus 0.3 percentage points), with New York City holding the top spot at 86.7 percent.

All four island counties reported RevPAR and ADR increases through the first three quarters of 2018.

Kauai hotels led the state in growth of RevPAR to $227 (plus 12.3 percent) through three quarters, boosted by increases in ADR to $294 (plus1 1.1 percent) and occupancy to 77.1 percent (plus 0.8 percentage points).

Oahu led all sun and sea destinations in hotel occupancy at 84.8 percent (plus 0.8 percentage points) through three quarters. Maui County ranked second at 77.4 percent (down 0.3 percentage points), with Kauai third at 77.1 percent (plus 0.8 percentage points).

“September’s results were not as bad as anticipated, especially considering the anxiety that Hurricane Lane and Tropical Storm Olivia created for the tourism industry between the latter part of August through middownSeptember,” Chun said.

Despite the heavy rains and high winds caused by the two storms striking parts of the Hawaiian Islands, Maui County, Kauai and Oahu all realized increases in RevPAR and ADR during September.

Kauai hotels earned the highest growth in RevPAR at 7.2 percent ($184) of all island counties in September, which was supported by increased ADR of $257 (plus 9.0 percent) offsetting lowered occupancy of 71.4 percent (down 1.2 percentage points.


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