Oahu enjoys its first increase in
28 months; other islands benefit
from an increase as well

By Russ Lynch
Star-Bulletin

Statewide hotel occupancy surged last month compared with September 1998 as Oahu recorded its first increase in 28 months.

Hotels and resort condominiums on all islands except Molokai recorded increased business as the statewide occupancy average rose to 74.2 percent last month from 69.9 percent in September 1998, according to a monthly report issued today by the accounting and consulting firm PKF-Hawaii. It was the fourth straight month of statewide year-over-year occupancy gains after 27 months of declines.

Room rates were higher, too, averaging $134.14 statewide last month, a 1.2 percent increase from $132.51 in September 1998.

Ernest Watari, PKF-Hawaii chairman and chief executive officer, said a particularly optimistic factor was the occupancy increase on Oahu, which has been hit harder than the neighbor islands by the slowdown in travel from Japan.

"It is hopeful that 1999 will finish with a strong fourth quarter as Asia continues to creep toward improvements in its economies and as the millennium draws near," Watari said.

Oahu had occupancy of 76.1 percent last month, up 2.9 points from 73.2 percent in the year-earlier month. Waikiki, where most of the state's hotels rooms are located, managed an increase of nearly 3 percentage points to 77.4 percent last month from 74.8 percent in September 1998, according to PKF-Hawaii.

The Big Island had September occupancy of 67.8 percent, up from 62.2 percent a year earlier; Maui averaged 74.4 percent, up from 69.2 percent; and Kauai's occupancy jumped to 76.4 percent from 66.3 percent.

Molokai occupancy dipped to 33.9 percent from 36.9 percent in the year-earlier month.

Oahu room rates averaged $116.03, down 1 percent from $117.20 in September 1998, but all other islands showed gains.

Big Island room rates averaged $154.17 last month, up 4 percent from $148.17; Maui's average rate was $152.83, up 1.1 percent from $151.22; Kauai was at $153.20, up 1.1 percent from $151.22; and Molokai raised its rates to an average of $75.70, an increase of 2 percent from $74.19.

PKF-Hawaii, which has reported on hotel trends since 1972, surveyed 83 hotels and 64 resort condominiums with a total of 40,006 rooms, or about 64 percent of available rooms in Hawaii.

For the first nine months of 1999, statewide occupancy equaled 74.06 percent, up slightly from 73.58 percent for the same period last year, PKF-Hawaii reports. Likewise, the state average room rate was a bit higher, rising to $141.66 from 141.52 for the first nine months of 1998.