Isle occupancy slips, revenues gain
Despite a decline in occupancy in October, Hawaii's hoteliers pulled in record rates that pushed revenue per available room to its highest ever, according to a report released yesterday by Hospitality Advisors LLC.
Statewide hotel occupancy was 74.3 percent during October, 1 percentage point below the same month last year, and mirroring a 1.1 percent decline in visitor days. Year to date, occupancy was 76.1 percent, down 4.6 percentage points.
Gains in revenue per available room, known as RevPAR, offset the occupancy drop for hotels in October, improving by 6.6 percent to a new high of $136.30. Maui's Wailea led the category with a 24.1 percent RevPAR increase to $253.38.
October's strong statewide RevPAR gain helped to boost year-to-date RevPAR figure to $151.33, a scant 0.7 percent gain.
Hawaii's hotel industry had forecast that it would experience a 1 to 2 percent decline in 2007, but business has shown signs of strengthening as the year has progressed, Toy said.
"Up until August, we were matching our forecast, but through October we are doing better than anticipated," said Joseph Toy, president of Hospitality Advisors. "It's encouraging, given the economic uncertainties in the marketplace."
In October, luxury hotels outperformed all classes of Hawaii properties as the state's visitor industry continued its shift toward higher-spending tourists.
Occupancy at luxury hotels statewide increased 2.7 percentage points to 76.5 percent and average daily room rates increased 5.4 percent to $272.29 per night. Occupancy at other hotel categories fell; however average daily room rates rose in every category but budget.
By island, Kauai was the top performer in October, with 78 percent occupancy. And 9.7 percent growth in Kauai's average daily room rate to $192.12, and represented the biggest rate increase among the counties.
By region, however, Maui's Lahaina/Kaanapali/Kapalua area achieved 80.9 percent occupancy -- the best in the state. And, Maui's Wailea achieved the state's highest average daily room rates, $351.63 per night.
Occupancy rates at Hawaii hotels in October and the same month last year:
Source: Hospitality Advisors LLC