Hotel industry still suffering

By Dan Nakaso
Advertiser Staff Writer

Hawai'i's hotels did a little better in March, but cheaper rates and continued sluggish occupancy numbers combined to make the first quarter of 2002 worse than the same time last year for the hotel industry, according to figures released by Hospitality Advisors LLC.

"We're gaining some ground, but we're fairly well behind the same quarter for 2001," said Joseph Toy, president of Hospitality Advisors LLC.

Visitors in every category — from budget to luxury rooms — are finding better deals, Toy said. The room rates at O'ahu's luxury hotels, in particular, plummeted from $194 in the first quarter last year to $178 this year.

"Luxury travel has suddenly become affordable," Toy said.

The result is that room revenue overall dropped 15.2 percent for the first quarter this year, from $756.3 million to $641.4 million. Revenue per available room fell 14.3 percent for the first quarter compared to the same quarter a year ago.

Statewide occupancy rates at the same time have gone from 80.1 percent in the first quarter of last year to 70.7 percent the same quarter this year. The overall drop in revenue, Toy said, "is the combination of lower occupancy and rate decreases."

O'ahu continued to be hardest hit of all of the islands in March. The average daily rate went from $118.75 last year to $112.02 this March.

But average daily rates went up on Maui (from $193.51 to $200.26), the Big Island ($175.35 to $185.51) and Kaua'i ($151.87 to $162.93).

Reach Dan Nakaso at dnakaso@honoluluadvertiser.com or 525-8085.