Hotel occupancy down
on all islands

But the rooms are bringing in
more money than last year

By Russ Lynch
Star-Bulletin



Hotel occupancy last month was down on all islands, compared with October 1995, but higher room rates helped compensate for the slower business, according to the latest survey.

PKF-Hawaii, an accounting and consulting firm that monitors the hotel industry, said year-to-date figures weren't bad but hotels have seen a slowdown. Last month was the sixth straight month in which occupancy was below the year-earlier level.

"I'd say that October was a slowdown from the prior months,", said Erik Kloninger, PKF-Hawaii manager. "We had a strong first quarter and ever since then there have been occupancy decreases."

In October, there were no major shifts in hotel room inventory and no big hotels opening to account for the occupancy drop. But the Hawaii Visitors and Convention Bureau has said tourists' stays have been shorter.

Statewide hotel occupancy last month was 72.53 percent, according to the PKF study which covered 54 percent of the available hotel rooms in Hawaii. That was 2.51 percentage points lower than the 75.04 percent occupancy reported for October 1995.

The statewide average room rate last month was $124.87, 4.6 percent above the $119.33 rate posted in October 1995.

However, revenue per available room was higher. PKF says that is a good indicator because it shows what the hotels had put on the market rather than the total number of rooms each property has. Rooms that aren't on the market don't need staff, hoteliers say.

"For the year to date, the revenue per available room is up nearly 8 percent," Kloninger said. "On the whole we're still looking at positive results for the lodging industry."

Last month on Oahu, occupancy fell to 76.23 percent, from 78.71 percent a year earlier, while room rates averaged $117, up from $111.93. Big Island hotel occupancy averaged 63.66 percent, down from 63.81 percent, while room rates averaged $115.06, up from $108.73.

Maui last month had an average occupancy of 71.68 percent and a room rate average of $147.04. A year earlier, the Maui occupancy rate was 75.13 percent with a room rate average of $140.44.

Kauai had 67.78 percent occupancy and an average room rate of $133.17, compared with 70.28 percent and $128.93. Molokai had 36.58 percent occupancy, with a room rate average of $73.49, compared with 39.27 percent and $75.27.




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