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The Honolulu Advertiser

Posted at 11:27 a.m., Wednesday, June 4, 2003

Study shows hotel occupancy on rise

By Kelly Yamanouchi
Advertiser Staff Writer

Visitors from the Mainland helped to fill some Hawai'i hotel rooms in April, leading to a slight improvement in hotel occupancy compared with a year ago.

Average hotel occupancy in the state was 66.9 percent in April, up from 65.4 percent in the same month a year ago, according to data from Hospitality Advisors LLC.

The average room rate for hotels statewide was $147.59, up 3.2 percent from $142.96 a year ago.

Waikiki occupancy was essentially flat at 62.8 percent. Among the islands, O'ahu hotels were least full with an average of 63.6 percent occupancy.

Meanwhile, Neighbor Island occupancy rates were boosted by a 13.1 percent increase in U.S. visitor arrivals.

"The increase in the U.S. market helped to blunt a steep drop of 33.2 percent in visitors from Japan, which primarily impacted O'ahu's market," according to the Hospitality Advisors report.

Maui had the highest occupancy rate of 73.9 percent. Hotels on the island also brought in the highest average room rate, at $194.36.

Big Island hotels saw the biggest improvement in occupancy, up 4.5 percentage points to 65.9 percent. Kaua'i hotels averaged 67.6 percent full.

The numbers also showed a significant difference in how various classes of hotels are faring. Luxury and upscale hotels had the highest occupancy levels, and budget hotels had the lowest statewide.

For example, there was a huge gap in occupancy levels between upscale Maui hotels, which had an average room rate of $151.04, and budget hotels on the island, which charge an average of $75.29 per room. Maui upscale hotels had average occupancy levels of 79.4 percent while budget hotels on the island averaged 55.4 percent occupancy levels.

On O'ahu, however, budget hotels that charge an average of $48.34 per room had the highest occupancy levels on the island, 65.6 percent.

For the year through April, Hawai'i fared better than last year, with an average of 72.6 percent occupancy, up from 69.9 percent. Every island posted higher occupancy levels than a year ago, with Maui leading at 76.3 percent occupancy. The Big Island had the lowest level at 69 percent.

Reach Kelly Yamanouchi at 535-2470, or at kyamanouchi@honoluluadvertiser.com.