Isle hotel occupancy accelerating
The sixth straight monthlyBy Russ Lynch
increase shows the economy's
rebound is gaining steam
Hawaii hotels showed higher occupancy last month than November 1998, marking the sixth straight month of increases, according to the monthly report by consultants PKF-Hawaii LLP.
The statewide occupancy average for hotels and resort condominiums last month was 72.64 percent, up 4.45 percentage points from 68.19 percent in the previous November.
Room rates were up too throughout the state, combining with occupancy to create a better return for the hotels and resort condominiums.
"This trend is signifying a turnaround in the Hawaii hotel industry which should carry through to the new millennium," said Ernie Watari, PKF-Hawaii chairman and chief executive officer. "It is hopeful that this will trigger a turnaround for the rest of the Hawaii economy."
The statewide average daily room rate was $136.16, up 3.2 percent from $131.91 in November 1998.
The statewide average revenue per available room was up 9.9 percent at $98.90 last month, from $89.95.
The biggest jump in business among the individual resort areas was in the belt of luxury hotels along the Big Island's Kohala Coast.
In that area, November occupancy was up about 10 points at 70.02 percent, from 59.11 percent, and the hotels managed a 2.1 percent increase in their average room rate, to $230.36, the highest in the state and up from $225.65 a year earlier.
The result was a 20.9 percent jump in revenue per available room on the Kohala coast, to $161.31 a day from $133.39.
The Big Island overall occupancy averaged 68.39 percent, up from 64.52 percent in November 1998.
The average Big Island room rate was up 4.5 percent at $157.38, from a year-earlier $150.55.
Kauai also had a financial improvement, combining an occupancy increase of 5.25 percentage points with a 9.1 percent room rate rise to produce a 17.9 percent increase in the revenue per available room.
The island had November occupancy of 70.1 percent, up from 64.85 percent, and an average daily room rate of $156.62, up from $143.58.
The result was revenue per available room of $109.80 last month, up from $93.11 a year ago.
Maui also did well with an increase of 3.5 percentage points in occupancy and a 5.3 percent rise in the average room rate, which combined to produce a 10.6 percent increase in the average cash flow per available room.
Maui had an occupancy average of 73.36 percent, up from 69.82 percent, and an average room rate of $154.50, up from $146.75.
The result was revenue per available room of $113.35, up from $102.47.
Led by strong business in Waikiki, Oahu showed average occupancy of 74.12 percent, up from 68.83 percent, and an average room rate of $116.78, up slightly from $115.96. The Oahu revenue per available room jumped 8.4 percent to $86.56, from a year-earlier $79.82.
Molokai alone showed lower figures for November, reporting an occupancy dip to 38.12 percent, from 42.93 percent a year ago.
The average room rate went up a little to $70.77 from $69.80, but the lower occupancy brought Molokai's average revenue per room down 10 percent to $26.98, from $29.97.
PKF-Hawaii said it surveyed 82 hotels and 64 resort condominiums with a total of 39,658 rooms, or 55 percent of available rooms in the state.