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Friday, July 21, 2000

Hawaii hotel
occupancy hit
28-year high in June

Rooms and resort condos
were 80.6% filled

By Russ Lynch


The Lions Clubs International Convention and continuing strength in leisure travel packed Hawaii's hotels last month, resulting in the highest June occupancy in at least 28 years, according to PKF-Hawaii's monthly survey.


Also helping the June figures was the Pacific Rim military exercise which brought personnel from several countries to the islands. Hotels and resort condominiums averaged 80.6 percent occupancy, the highest for any June since the consulting firm started keeping records in 1972 and nearly 9 percentage points above the June 1999 average of 72 percent, PKF-Hawaii said.

The strong demand let the hotels raise their room rates, which averaged $147.01 statewide last month, a 7.1 percent increase from $137.22 in the year-earlier month. Revenue per room, the cash flow from the rooms that were available, averaged $118.44, up 19.9 percent from $98.78 in June 1999.

June was the fifth consecutive month of year-over-year occupancy increases and the third month in a row in which occupancy was at a 10-year high.

"Hopefully, this trend will continue through the rest of the summer months as U.S. travelers continue to be bullish about the more-expensive, long-haul travel to Hawaii," said Ernie Watari, PKF-Hawaii chairman and chief executive officer.

Occupancy through the first half of this year averaged 78.3 percent, up from 72.9 percent in the first half of 1999, PKF-Hawaii said. The half-year statewide room rate average was $153.26, up 6.2 percent from $144.35.

For June, Waikiki showed an occupancy increase of more than 10 percentage points, to 84.4 percent from 74.1 percent in June 1999. Waikiki room rates averaged $123.17, up 6.2 percent from $115.97 a year earlier, and revenue per room in Waikiki was $104, up 21.1 percent from $85.89.

Big Island occupancy averaged 70.8 percent last month, up from 67.1 percent, with an average room rate of $165.39, up 8.1 percent from $152.98 in June 1999, resulting in average revenue per room of $117.03, up 14 percent from $102.66.

Maui averaged 81.3 percent occupancy in June, up from a year-earlier 74.4 percent, with an average room rate of $179.12, up 8.7 percent from $164.71. The revenue per room on Maui averaged $145.60, up 18.8 percent from $122.59 in June 1999.

Occupancy on Kauai averaged 81.4 percent last month, up from 71 percent. Kauai room rates averaged $168.13, up 11.3 percent from $151.10, resulting in an average revenue per room of $136.81, up 27.5 percent from $107.31.

Molokai alone showed a year-over-year drop in occupancy, to 31 percent from 35.7 percent in June 1999.

However, the island lifted its average room rate 21.7 percent to $83.93 from a year-earlier $68.96, resulting in a revenue average of $25.99 per room, up 5.7 percent from $24.60.

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