Hotel revenues climbing

By Michele Kayal
Advertiser Staff Writer

Hawai'i's hotel occupancy declined for a sixth consecutive month in July, according to new figures, but rates continued to climb, pushing revenue upward with them.

Statewide occupancy dipped more than 5 percentage points from July 2000, to 75.9 percent, according to the report from Hospitality Advisors and Smith Travel Research.

Overall room rates, however, rose more than 7 percent to $150.76.

For the year, statewide occupancy is down more than 2 percentage points compared to the first seven months of 2000 — to 75.2 percent. Room prices are up more than $8 a night to $148, however, pushing the key profit indicator of revenue per available room up about 3 percent to $111.37.

Kaua'i showed the smallest loss in occupancy, with 79.2 percent of its rooms full in July, compared to 81.1 percent in July 2000. The Big Island suffered the biggest slide, with occupancy falling 10.3 points from last July to 70.1 percent this July.

Maui continues to lead the state in occupancy and room rates. Despite a nearly 3 percentage point decline in occupancy from last July, 82 percent of the island's rooms were taken last month. Rates hit $187.83, an 11.3 percent increase from last July.

Every island boosted room rates, with the Big Island making the biggest spike of 11.5 percent over last July to $175.65. Oahu posted the lowest rates, at $121.17, a more than 3 percent increase from last July.

Revenue per available room rose slightly statewide from $113.79 to $114.50 for the month. But on the Big Island, which raised its rates the most, revenue per available room fell about 3 percent to $123.13.

The statewide occupancy decline outpaced Hawai'i's 1.6 percent loss in visitor arrivals for July, the report noted, suggesting an increased interest by visitors in timeshare, cruise ships, second home and vacation rentals.