Oahu hotel occupancy drops
Declining visitor arrivals and demand for hotel rooms, especially in Waikiki, created a 2.2 percentage point drop in Hawaii's November hotel occupancy, according to the latest Hawaii Hotel Flash Report released by Hospitality Advisors LLC.
But isle hotels were able to make up for the lackluster 72.5 percent occupancy level by coming out ahead on pricing. Hawaii's average daily room rate rose to $185.67, a new November high. The increase bolstered revenue per available room (RevPAR), the industry's most significant indicator, to a record $134.59.
A combination of decreasing visitor arrivals and increasing room supply resulted in a 6.8 percentage point decline in Oahu occupancy to 74.2 percent. Room rates on Oahu grew by 5.8 percent to $161.54, but Oahu RevPAR fell by 3.1 percent to $119.86 as demand for Waikiki rooms fell by 7.8 percent.
"Has there been some softening in demand? Yes, but we do have better products, so higher rates combined with lower occupancy still leads to better revenues," said David Carey, president and CEO of Outrigger Enterprises Group.
A decline in the number of Japanese visitors has hurt hotel demand in Waikiki, Carey said. However, since reinvesting in new hotel products, Outrigger has posted growth for three years running in its market share of visitors from Japan, he said.
Neighbor Island hoteliers fared better in November than those on Oahu.
Kauai, the only island to show an increase in visitor arrivals in November, saw its occupancy level climb 5.6 percent to 73.7 percent. Kauai's hotel guests also paid an average of $193.97 per room, an 11.9 percent price gain.
Maui's upscale hotel market, which posted a 20.5 percent daily room rate gain in the luxury Wailea region, helped hoteliers recoup an 8.8 percent increase in RevPAR. Hoteliers earned an average of $174.33 in revenue per available room and saw occupancy edge up 2.3 percentage points to fill approximately 74.4 percent of their rooms.
The Big Island saw occupancy rise a scant 0.8 percentage points to 62.7 percent; however average daily room rates rose 2.4 percent to $186.66. Hoteliers also saw RevPAR reach $117.04, a gain of 3.7 percent.
Occupancy rates at Hawaii hotels in November and the same month in 2006
Source: Hospitality Advisors LLC