Hawai'i hotels fullest in nation
By Kelly Yamanouchi
Advertiser Staff Writer
Hawai'i had the highest hotel occupancy rate among the nation's top 25 markets in the first quarter amid a recovery in Japanese arrivals and continued strength among domestic visitor numbers.
Hawai'i's average occupancy rate in the first three months of 2004 was 80.1 percent, up from 74.3 percent in the same period a year ago, according to Hospitality Advisors LLC. The market with the second highest occupancy rate in the first three months of 2004 was Miami at 76.6 percent. Last year, Hawai'i came in second behind New York.
For the month of March, tourists flowing into Hawai'i contributed to an average 80.7 percent hotel occupancy rate, up 7.1 percentage points over last year.
The gain is one more sign that Hawai'i's No. 1 industry has recovered from a decline caused by the SARS scare and the start of the war in Iraq.
"March and April were both good months, especially compared to last year," said Keith Vieira, senior vice president for Starwood Hotels & Resorts in Hawai'i.
In Hawai'i during the month of March, Maui hotels were the fullest on average with 83 percent occupancy, followed by Kaua'i (81.8 percent) and O'ahu (80.2 percent). The Big Island trailed at 77.5 percent occupancy on average. All four islands posted increases over prior-year levels.
"Our O'ahu hotels and resorts' occupancy percentage showed a marked increase," said Kelvin Bloom, president of Aston Hotels & Resorts. "We saw a rebound in Japanese visitors so that really helped."
Maui hotels in March had the highest average daily rate at $207.04, up from $198.95 in March 2003.
The average daily rate statewide was $155.13, up from $150.65 the same month a year ago. March's average statewide revenue per available room, a measure of hotel financial performance, was $125.12, up from $110.81 in the year-ago period.
Economy hotels across the state had the highest average occupancy rate at 82.6 percent, while upscale hotels had the lowest average occupancy at 79.4 percent.
Hawai'i hotels brought in $715.4 million in revenue in the first three months of the year, up 8.7 percent over the same period last year.
Among the top markets in the nation in the first quarter, Hawai'i had the highest revenue per available room. Hawai'i had the second most expensive average daily rates for hotel rooms in the first three months of the year at $152.89, behind New York's $161.63.
But Vieira noted that hotels still face financial challenges as expenses have increased. "While we are happy with the good news," Vieira said, "there's significant drops in profitability."
"While occupancy may be about at 2001 levels and rates are maybe a little bit behind, you're facing four years of expense increases," Vieira said.
The hotel survey includes more than 160 properties representing approximately 50,300 rooms, or 75 percent of all lodging properties with 20 rooms or more in the state.
Reach Kelly Yamanouchi at 535-2470, or at kyamanouchi@honoluluadvertiser.com.
