Isle hotel revenue, occupancy decline
POSTED: Friday, August 21, 2009
Fewer tourists stayed in Hawaii hotels in June, and those that did spent less on their rooms, causing revenue-per-available-room to drop 29.1 percent for the state's struggling hotel industry.
Statewide hotel occupancy fell by 5.8 percentage points to 63.1 percent, while the average daily room rate contracted 16.6 percent to $171.97, according to a hotel report released today by Hospitality Advisors LLC.
"Despite the steep discounting of room rates in the market, hotel occupancies during what normally would be our busy summer season are at record lows, and the impact on hotel revenues and Hawaii's tax base is tremendous," said Hospitality Advisors President Joseph Toy.
The losses led to a $339 million decline in room revenue during the first six months of this year and are expected to inhibit recovery until mid-2010, Toy said.
All islands reported losses in occupancy, room rates and revenue-per-available room during the first six months of the year.
"Similar to most destinations, we have experienced a tremendous pullback in the market, unlike anything we have seen before." Toy said.
Still, during the first half of 2009, Hawaii hoteliers enjoyed the fifth-best occupancy rates in the nation and the second-best daily room rates and revenue-per-available room, Toy's report said.
Occupancy rates at Hawaii hotels in June and the same month last year:
Source: Hospitality Advisors LLC