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Hawaii hotels
have merry May
Occupancy rises 7.6 points
By Russ Lynch
from last year
Star-BulletinHawaii's hotels had stronger business last month than in any May over the past 10 years and it was the fourth month in a row in which occupancy levels were higher than the previous year.
Demand was so strong that hotels were able to raise their room rates an average of 7.1 percent, according to monthly figures issued today by the hospitality industry consulting firm PKF-Hawaii.
The statewide average occupancy in the hotels and resort condominiums was 74.4 percent last month, up from 66.8 percent in May 1999.
April also had a 10-year occupancy high.
The May room-rate rise and the 7.6-percentage-point increase in average occupancy helped produce a "remarkable" 19.3 percent increase in revenue per available room, the key statistic that shows how well hotels are likely to be doing financially, said Ernie Watari, PKF's chairman and chief executive officer. Revenue per available room is the cash received per room and is considered a better economic indicator than the posted room rates. Last month, the revenue per available room was $109.88 per room, up from $92.09 in May 1999. The posted room rates averaged $147.77 statewide, up from a year-earlier $137.95.
"In addition to the strong presence of U.S. mainland visitors, the Japanese holiday season of Golden Week (late April into early May) also contributed to the impressive increases for the hotel industry," Watari said.
He said consumers apparently still have bullish spending habits, despite threats of a slowdown in the U.S. economy.
Waikiki beachfront hotels averaged 76.7 percent occupancy last month, up from 69.8 percent in May 1999. Their room rates averaged $160.12 per night, up from a year-earlier $149.33, and beachfront average revenue per available room was $122.75, up 17.7 percent from $104.30 a year ago.
Bargains were still around for the budget-minded traveler, as Waikiki hotels and condominium units without restaurants and away from the beach had an average room rate of $64.50 last month, the lowest in the state but up from $62.59 a year ago. The bargain properties averaged occupancy of 68.5 percent, up from 62 percent, and the result was an average revenue per room of $44.20, up 14 percent from $38.78 in May 1999.
Big Island occupancy averaged 69.6 percent last month, up from 60 percent, and the island's revenue per available room averaged $114.49, up 22.4 percent from $93.52 in May 1999. Maui hotels were 78 percent full, up from 70.2 percent, and their room revenue averaged $138.17 a night, up 22.1 percent from $113.16.
Kauai's occupancy averaged 79.4 percent, up from 71.3 percent, and the Kauai revenue average was $130.10, up 17.4 percent from $110.84. Molokai had an occupancy average of 40.1 percent last month, up from 38.5 percent, and its room revenue average was $31.83, up 21 percent from $26.31 per available room in May 1999.
