Hotel occupancy
figures continue year’s
falling trend

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By Russ Lynch
rlynch@starbulletin.com

For the fifth month in a row, Hawaii's hotels and resorts had lower occupancy than last year, according to survey and consulting firm PKF-Hawaii. Higher room rates helped stem the negative flow, however.

Statewide occupancy in June averaged 74.4 percent, down 6.1 percentage points from 80.5 percent in June 2000. However, the average statewide room rate was up 5 percent to $155.54 a night from last year's $148.19.

Of all the islands, Molokai alone had a year-over-year increase in June occupancy, but its 38.2 percent average last month -- though higher than the year-earlier 37.7 percent -- was still at the bottom.

Lanai is not included in the monthly survey.

Ernie Watari, the survey firm's chairman and CEO, said although the occupancy numbers were below those for the same month last year, the overall outlook for the industry was improved by the higher rates.

He said recent announcements of significant investments for renovations and improvements in Waikiki are positive signs and activities such as the recent Waikiki Brunch will help the industry increase its competitiveness against other destinations.

As usual, the luxury hotels and resort condominiums along the Kohala Coast of the Big Island had the highest room rates, averaging $238.65 last month, up 6.2 percent from $224.76 a night in June 2000. That helped bring the Big Island average to $174.94, up 5.8 percent from $165.39.

Maui, however, had the best islandwide room rate average, $210.13, up 11.8 percent from $188 a year earlier.

Rate increases across the state weren't quite enough to make up for the drop in the number of visitors, resulting in average revenue per available room last month of $115.69, down from $119.25 in the previous June. The higher rates did, however, hold that decline to only 3 percent compared to the year-earlier month and Watari said that for the first half of 2001 room revenues were actually above those in the first half of last year.

For January through June, occupancy was down about two points, at 76.4 percent from a year-earlier 78.6 percent, but the average room rate statewide was $161.90, up 5.2 percent from $153.88 in the first half of last year. That brought the six-month average room revenue to $123.73 this year, up 2.3 percent from $120.91 last year.