State's hotel revenues at near-record levels

By Kelly Yamanouchi
Advertiser Staff Writer

Hawai'i's hotel industry brought in $2.5 billion in 2003, the highest since the record year of 2000.

Hotels were able to raise prices last year, bring in more tourists and keep them in the Islands for longer stays to come close to the $2.7 billion in room revenues brought in to hotels in 2000, according to Hospitality Advisors LLC.

"The big winners were the midprice properties," which saw the largest increases in revenues, said Joseph Toy, president of Hospitality Advisors. "That just shows the attractiveness of Hawai'i for value travelers."

At the same time, luxury hotels brought in about half of the total room revenues to the state.

Hawai'i had the second- highest occupancy rate in the nation at 72.5 percent, behind New York's 74.7 percent. Hawai'i's occupancy rate was about a 2.9 percentage point increase over 2002.

"It does show that we've had a comparatively nice recovery," Toy said.

Kaua'i hotels posted the highest occupancy rate in Hawai'i during the year at 76.1 percent, up 5.4 percentage points from 2002, as the number of hotel rooms available was reduced and sales of time-shares increased.

The Big Island had the lowest at 65.3 percent, up 0.7 percentage points. The average occupancy rate on O'ahu was 73.1 percent, up 2.6 percentage points.

Budget hotels in Hawai'i were the fullest on average at 75.5 percent occupancy, up from 72.1 percent the previous year. Budget and economy hotels saw increases in occupancy later in the year from Canadian travelers, Toy said.

Midprice hotels posted the lowest average occupancy rate for the year at 70.7 percent, but they also had the highest room revenue increase: up 10.5 percent to $415 million.

Hawai'i had the second most expensive room rate in the nation with an average of $144.44, up 2.5 percent from 2002.

Average revenue per available room, a critical measure of hotel performance, was $104.78 in Hawai'i, up 6.7 percent and also second highest in the country.

New York had an average daily rate of $169.27 and revenue per available room of $126.38.

In December, the average statewide occupancy rate was 72.8 percent.

On O'ahu, the average occupancy rate in December was 79.2 percent, up from 72.3 percent the previous year. Maui hotels were 69.6 percent full, up from 62.1 percent in 2002.

Kaua'i hotels, at 64.2 percent occupancy, and Big Island hotels, at 61.1 percent occupancy, trailed behind, but all islands posted increases in December over the same month in 2002.

The average price for a room in December was highest on Maui at $210.42 and lowest on O'ahu at $124.98.

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