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Hotel occupancy
in Hawaii keeps
its momentum

Molokai posted the biggest
gain in November as all islands
but Kauai showed increases

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By Russ Lynch
Star-Bulletin

Hawaii hotels and resort condominiums continued their strong performance in November, with occupancy and room rates both higher than they were in the previous November, according to the monthly survey by the hospitality industry consulting firm PKF-Hawaii.

Statewide occupancy was 76.5 percent last month, up 3.7 percentage points from 72.8 percent in the year-earlier month. Room rates averaged $144.76 a night, up 5.8 percent from the year-earlier average of $136.81.

Among the individual islands, all showed year-over-year occupancy increases except Kauai, which showed a barely measurable decline.

Oahu occupancy was 78.9 percent last month, up from a year-earlier 73.7 percent, with the full-service hotels along Waikiki Beach leading the way at 81.7 percent, up from 76.4 percent in November 1999.

Room rates on Oahu averaged $122.74, up 5.3 percent from a year-earlier $116.60, with Waikiki beachfront hotel rates up 7.3 percent at an average of $164.43, from $153.18 in the previous November.

Big Island occupancy averaged 72.3 percent last month, up from 71.9 percent in the year-earlier month, and the November Big Island room rate average was $168.68, up 7.9 percent from the previous November's $156.32.

Maui showed an occupancy increase to 76.9 percent, from 73.2 percent, and Maui room rates averaged $170.58 last month, up 8.7 percent from $156.95 in November 1999. Kauai had a 70 percent occupancy average in November, down from 70.1 percent in the year-earlier month, and Kauai room rates averaged $159.16, up 1.6 percent from $156.62.

Molokai showed a 43.5 percent November occupancy level, up from last year's 38.1 percent, and the average Molokai room rate last month was $75.06, up 6.1 percent from $70.77 in November 1999.

Ernie Watari, PKF-Hawaii chairman and chief executive officer, said the outlook is good for 2001 thanks to the election of George W. Bush to the presidency and the Federal Reserve Board's hints of lower interest rates.

"With Bush entering the presidential office promising significant tax cuts and the Fed's indication of possible interest rate decreases, visitor arrivals from the U.S. should remain productive as U.S. consumers anticipate more money in their pockets," Watari said.

For the November report, PKF surveyed 147 properties with a total of 40,263 rooms, or 57 percent of the rooms available in Hawaii.