Rain failed to dampen isle hotel business

Occupancy statewide slipped 2.5 percentage points in March

Most Hawaii hotels saw occupancy dampened only slightly during rain-soaked March, according to the latest data fromHospitality Advisors LLC andSmith Travel Research.

And for the first quarter of the year, which included not only the rains of March but also February, Hawaii had the nation's highest hotel occupancy rate, 83.2 percent, edging out Miami.

"Despite the heavy rain and tragic floods that hit Kauai and the state overall, Hawaii nonetheless continued to be a strong destination for the U.S. market," said Joseph Toy, president of Hospitality Advisors.

In March, the survey found statewide occupancy at 82.4 percent, down 2.5 percentage points from the same month in 2005.

Kauai took the biggest occupancy hit for the month, down 7.8 percentage points, but still managed to keep its hotels 73.6 percent full despite the rains. Maui was down 2.4 points to 83.8 percent, while Oahu was down 1.9 points to 84.6 percent. Big Island hotels lost only 0.9 percentage points in occupancy, slipping to 78.1 percent.

Average daily room rates across the state didn't suffer; they were up 9.3 percent to $185.80 for the month.

Although Hawaii's occupancy for the quarter was slightly lower than the 83.6 percent during the same period in 2005, high demand drove substantially higher rates across the islands.

The average daily rate statewide was $185.50 for in the first quarter of this year, up 12 percent from the same quarter last year. Only New York City hotels topped that, fetching a rate of $195.11 during the quarter.

Occupancy on Oahu hovered at 86.1 percent in the first quarter in 2006, while hotel guests paid an average of $154.74 for a room, up 15 percent from last year.

Hotels on Maui were 83.1 percent full during the quarter, slightly less than 83.5 percent in the same quarter last year. But rates on Maui rose 13 percent to $244.59, the state's highest.

Occupancy on the Big Island was 79.4 percent, up from 78.6 percent during the same quarter in 2005; the average rate paid by a hotel guest was $187.64, 5 percent more than in 2005.

Occupancy on rain-soaked Kauai dropped slightly to 74.3 percent from 78.4 percent, but average daily rates rose to $190.12, up 4 percent.