May hotel occupancy drops slightly in isles

Statewide hotel occupancy slipped by 0.8 percentage points in May compared to last year, but the decline was "less severe" than expected, according to a monthly report released yesterday.

Hotel occupancy Occupancy rates at Hawaii hotels in May and the same month last year: 2008 2007 Statewide 68.3% 69.1% By Island Oahu 72.5% 70.8% Kauai 69.6% 72.8% Maui 65.5% 69.6% Big Island 57.6% 60.3% Source: Hospitality Advisors LLC

A large portion of the decrease in May's visitor arrivals came from cruise visitors, resulting in a slight drop in hotel occupancy to 68.3 percent for the month, according to a Hospitality Advisors LLC report.

The state's average daily rate rose 2 percent to $190.66 from last year, boosting revenue per available room by 0.8 percent to $130.16.

A 35.9 percent increase in Canadian visitor arrivals to Oahu in May helped Oahu's hotel occupancy jump by 1.7 percentage points to 72.5 percent, while room rates also rose by 3.8 percent to $166.38. Revenue per available room rose 6.3 percent to $120.63.

Neighbor island hotel room demand slumped. Maui occupancy fell by 4.1 percentage points to 65.5 percent, with a 2.4 percent average daily rate increase to $244.44. Revenue per available room dropped 3.7 percent to $160.11.

Kauai and the Big Island also reported lower revenues due to softer occupancy, the report said. Kauai hotels had a 3.7 percent drop in revenue per available room to $135.94, while the Big Island saw a 3.3 percent decline to $108.37.

Budget hotels continued to post increases in occupancy. Statewide budget occupancy rose 8.6 percentage points to 72.3 percent, while room rates grew by 6.3 percent to $101.22, boosting revenue per available room by 20.8 percent to $73.17.

Luxury hotels, meanwhile, posted a 1.9 percentage point drop in occupancy to 72.4 percent, resulting in a 0.9 percent slip in revenue per available room to $196.34. The average daily rate rose by 1.7 percent to $271.33.