Dollars per hotel room set record during 2005
Hawaii's total hotel room revenues set a new industry record last year by reaching $3 billion for the first time ever, as average daily room rates and revenue per available room set new highs, according to a report released yesterday by Hospitality Advisors LLC.
Continued travel demand for Hawaii, as well as a resurgence in the state's convention, Japanese and Canadian visitors, boosted average hotel occupancy to 81.2 percent and helped raise overall revenues to $3.01 billion, a significant jump over the $2.73 billion recorded in 2004 and the $2.7 billion in 2003.
In terms of United States hotel markets, only New York outpaced Hawaii's performance in 2005, according to research from Smith Travel Research.
Much of the state's growth in 2005 was driven by tourism's higher yielding markets such the meetings, conventions and incentive market, honeymooners, U.S. East and independent travelers, who make their own travel plans rather than using a package tour, said Joseph Toy, president of Hospitality Advisors.
A 2.6 reduction in room supply due to hotels converting into condominium, condotel, and timeshare accommodations combined with a 1.9 percent increase in the number of room nights sold helped average daily room rates in Hawaii reach $166.86, a 9.7 percent gain over the 2004 level.