Posted on: Thursday, October 10, 2002
August may be 2002 peak for hotels
By Kelly Yamanouchi
Advertiser Staff Writer
Hawai'i hotels in August hit their highest occupancy levels so far this year, according to the latest data released yesterday on the state of one of the Islands' biggest industries.
Average statewide hotel occupancy reached 78 percent in August, the highest level since the Sept. 11 attacks last year and almost on par with August 2001, when occupancy was 78.1 percent, according to the monthly survey by hospitality consulting firm Hospitality Advisors LLC.
"I think August will probably be our peak month of the year," said Hospitality Advisors president Joseph Toy. Tourism leaders have said September business was slow and the rest of the year is a historically slower season for travel to Hawai'i.
While occupancy levels rose, the average daily room rates continued to struggle. Average statewide daily room rates fell to $149.73 in August, compared with $152.03 the same month a year ago.
And while statewide averages were strong in August, O'ahu continued to fall behind the other islands, Toy said.
Big Island and O'ahu hotels posted the same occupancy levels of 75.9 percent in August, but the Big Island was on its way up and O'ahu on its way down compared with a year ago.
O'ahu was the only island to see a drop in occupancy, with a 1.8 percentage point decrease. The Big Island had an improvement of 4.5 percentage points.
That may be because budget-minded visitors, a key market for Waikiki, are opting to stay closer to home because of economic uncertainty and the cost of airfare, said Joseph Patoskie, associate professor of travel industry management at Hawai'i Pacific University.
The O'ahu numbers were particularly disappointing because hotels had the benefit of 8,000 visitors to the island to attend the National Medical Association convention, Toy said.
Hospitality Advisors, in conjunction with Smith Travel Research, surveyed 160 properties for the August report, representing 50,829 rooms or 74.1 percent of all lodging properties in the state with 20 rooms or more.
Statewide, economy and budget hotels continued to do well, with increases in both occupancy rates and room rates.
Economy hotels were 78.3 percent full in August, compared with 73.6 percent a year ago. On Maui in particular, an increase in air seats from Canada has brought more budget-conscious visitors here, boosting occupancy for economy hotels to 85.7 percent occupancy, up from 78.3 percent last year.
Revenue per available room, an important indicator of hotel performance, fell to $116.83 from $119.44 statewide. Year-to-date, revenue per available room was $101.66, compared with $111.88 a year ago. Only the Big Island had an improvement, with $133.78 in revenue per available room, up from $130.77.
August figures were generally higher than year-to-date occupancy rates. Statewide occupancy was 70.9 percent for the year through August, compared with 75.3 percent last year. The average daily rate was $143.39 year-to-date, compared with $148.60 the same time last year.
Hotel occupancy for the remainder of the year will show improvements compared with year-ago figures that were hurt by decreased travel after Sept. 11, but will not be as high as 2000 record levels, Toy said.
"Looking forward we are somewhat concerned about the fall," said Kelvin Bloom, president of Aston Hotels & Resorts. "The uncertainty of the financial markets combined with the geopolitical instability doesn't provide much encouragement."
Reach Kelly Yamanouchi at 535-2470, or at kyamanouchi@honoluluadvertiser.com.
