Hawaii hotels
fuller in October

Occupancy returns
to pre-9/11 levels,
PKF Hawaii says

Hawaii hotels and resort condominiums continued their strong performance in October, with occupancy and room rates returning to levels not seen since pre-9/11 days, according to a monthly survey by the hospitality industry consulting firm PKF Hawaii.

Occupancy statewide reached 77.3 percent last month, up 8.3 percent from 71.4 percent in the year-earlier month. Room rates averaged $145.33 a night, up 5.7 percent from the year-earlier average of $137.45.

Among the individual islands, all showed year-over-year occupancy increases except Kauai. The Garden Isle posted a slight decline but showed the greatest increase in average daily room rates, which rose an average of $17 a night.

While room rates still have room to grow in most locations, October's occupancy is the best this month has seen since 9/11, said Keith Vieira, senior vice president and director of operations for Starwood Hotels & Resorts Worldwide Inc., Hawaii and French Polynesia.

"I'm not complaining things are good," Vieira said. "However, we still need to focus on attracting higher spending visitors so that we can increase room rates and spending."

Oahu occupancy was 82.7 percent last month, up from a year-earlier 75.1 percent, with the full-service hotels along Waikiki Beach leading the way at 86.8 percent, up from 77.8 percent in October 2003.

Room rates on Oahu averaged $111.53, up 5 percent from a year-earlier $106.26, with Waikiki beachfront hotel rates up 3.4 percent to $147.20 from $142.42 in the previous October.

Big Island occupancy averaged 68.9 percent last month, up from 61.8 percent a year-earlier. Hilo posted a 34.1 percent occupancy increase -- the largest of any location -- rising to 71.6 percent from 53.4 percent.

The average room rate on the Big Island last month was $168.23, up 3.2 percent from the previous year's $162.98.

Maui occupancy increased to 74.45 percent from 70.4 percent, and Maui room rates averaged $193.64 last month, up 7.15 percent from $180.72 in October 2003.

Molokai showed a 56.1 percent October occupancy level, up from last year's 44.83 percent, and the average Molokai room rate last month was $109.77, up 5.3 percent from $104.26.

Kelvin Bloom, president of Aston Hotels & Resorts, said the outlook is good for 2005 thanks to increased airlift and the continuing popularity of Hawaii as a safe but exotic destination.

"The visitor industry is returning to full song, and we're all finally singing a happy tune," Bloom said.