Hotel occupancy still rising
By Kelly Yamanouchi
Advertiser Staff Writer
Hawai'i hotels continued their recovery this year with occupancy at 70.2 percent in September as the industry enters its slower travel season.
The September performance, up 5.6 percentage points over last year, reflects improvement in tourist arrivals from the Mainland counteracting declines in travel from Japan.
Hotels still are falling short of record occupancy levels seen in 2000 when hotels were 74.1 percent full in September, according to data from Hospitality Advisors LLC.
For the year through September, Hawai'i hoteliers brought in $1.897 billion in room revenue, up 4.7 percent from last year. Their income was lower than the 2001 revenues of $1.993 billion and 2000's $2.031 billion.
September's figures follow a record-breaking summer that solidified tourism's recovery, one that could pull back during Hawai'i's slower fall "shoulder season."
All islands posted improvements over last year. Kaua'i enjoyed the highest occupancy rate at 80.2 percent, while Big Island hotels were least busy at 56.6 percent occupancy.
Upscale hotels recorded the highest average occupancy levels at 73.8 percent and economy hotels reported the lowest levels at 67 percent.
Daily room rates, a closely watched industry measure, showed improvement. In September, hotel guests paid an average of $133.01 per night, up from $130.22 in September 2002.
Two categories of hotels charged lower room rates for the month than last year. Luxury properties posted an average rate at $214.23, down from $215.05 last year. Economy hotel rooms were also slightly cheaper on average at $71.09 compared with $71.59.
At Aston Hotels & Resorts, President Kelvin Bloom expressed concern that discounted hotel rooms, while driving the improvement in occupancy rate, are hurting profits.
"I think we still have a long ways to go before we get back to pre-9-11 levels," Bloom said.
"What that still tells us is that Japanese continue to have economic challenges and only now may be beginning to get somewhat back on track," he said.
"Thank goodness for the domestic arrivals. If it wasn't for the U.S. Mainland I think the industry and the state as a whole would not be in a very good place."
Hospitality Advisors President Joseph Toy said the outlook for the future remains uncertain, with persistent high unemployment rates nationally and fragile consumer confidence.
This year and last, the tourism industry benefitted from groups moving meetings and trips to Hawai'i due to concerns over travel to Europe and Asia.
"Whether this trend will continue to 2004 remains to be seen," Toy said.
For the year-to-date, hotels were 73 percent full, up from 70.6 percent in the same period last year. The average daily rate increased 2.2 percent to $144.88 from $141.76 a year ago.
Hawai'i still leads in hotel occupancy for the year to date among the top 25 hotel markets. New York ranked second highest with 72.5 percent occupancy, followed by San Diego; Washington, D.C.; and Anaheim, Calif.
New York hotels charged more per room at an average daily rate of $158.98. Hawai'i had the second highest average rate.
Hospitality Advisors surveys more than 160 properties including about 50,000 rooms, or 75.5 percent of all hotels with 20 rooms or more in Hawai'i.
Reach Kelly Yamanouchi at 535-2470, or at kyamanouchi@honoluluadvertiser.com.
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