Hotel rooms
go empty in
September

Occupany rates drop after
attacks, new report confirms

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By Russ Lynch
rlynch@starbulletin.com

In another confirmation of tourism's bad news, a monthly study of Hawaii's hotel industry showed that hotels were slightly more than half full last month.

Statewide hotel occupancy averaged 57.4 percent in September, and the only good news was that room rates stayed nearly level with a year ago, said the report by PKF Hawaii Inc.

The statewide average room rate last month was $141.62, down 1.4 percent from $143.66 in September 2000. The drop in the number of guests, however, meant a big dip in the revenues the hotels received. The revenue per available room dropped 26.1 percent year-over-year to average $81.28 a day last month, compared to $109.94 in September 2000.

"Statewide, Hawaii's occupancy was down 25.01 percent with revenue per available room showing a decrease of 26.07 percent," the report said. "Occupancies were averaging in the 40s to 60s when just a year ago they were averaging in the 60s to 80s."

The full-service hotels on the beach in Waikiki saw their occupancy plunge after the Sept. 11 terrorist attacks that severely cut into travel, ending September with an average for the month of 57.5 percent, down from a year-earlier 81.2 percent. Their average room rate of $154.96 last month was down 5.4 percent from $163.72 in the previous September.

Waikiki as a whole averaged 58.7 percent last month, down from occupancy of 79.7 percent in September 2000. The all-Waikiki average room rate of $115.25 was down 4.9 percent from $121.18.

The Big Island had September occupancy of 53.6 percent, down from 68.2 percent, but the island's average September room rate of $163.47 was up slightly from $163.14. Average occupancy on Maui was 57 percent, down from 75.4 percent, with an islandwide average room rate of $183.92, up 4 percent from $176.85.

Kauai had occupancy of 59.1 percent, down from a year-earlier 76 percent, and an average room rate of $159.56, down 3.3 percent from $165.03.

Molokai hotels were one-third full last month, 33.1 percent, down from an already-poor 44.3 percent the previous September. Molokai did manage some higher room rates, however, averaging $95.98 a day for those few rooms that were occupied, up 16.7 percent from $82.25 in September 2000.

As with the rest of the state, however, the low occupancy wiped out any gains and left the Molokai hotels and resort condominiums with revenue per available room -- a key financial indicator -- of $31.74, down 12.9 percent from a year-earlier $36.44.