Posted on: Friday, April 1, 2005
Hotels sustain surge in occupancy
By Lynda Arakawa
Advertiser Staff Writer
Hawai'i hotel occupancy and room rates continued to grow in February as the state welcomed more visitors.
Gregory Yamamoto • The Honolulu Advertiser The higher occupancy and an 8.3 percent rise in average hotel room rates pushed statewide room revenues up 11.4 percent to $253 million.
Room rates may continue to rise as hotels work to make up for losses suffered during slow periods following the Sept. 11 terrorist attacks, the Iraq war and the SARS outbreak in Asia. Recent hotel upgrades and a shrinking room inventory because of conversions of hotels to condominiums have allowed hoteliers to command higher prices.
"While we're happy that there has been a rebound in visitors and we're happy that there looks to be improvement, we cannot be overly optimistic because we still have a long way to go in catching up," said Keith Vieira, senior vice president and director of operations for Starwood Hotels & Resorts in Hawai'i.
"Expenses have grown tremendously during that time. So I think the visitor industry is pleased that things are getting better, but we're still significantly behind five years ago in terms of profitability."
Statewide average daily room rates in February grew to $164.64 from $152.06 last year.
Every major island saw higher occupancy, higher average room rates and higher revenue per available room.
O'ahu had the highest occupancy of 89 percent, thanks to the NFL Pro Bowl and conventions in February. Maui was next at 86.4 percent, followed by Kaua'i at 83.2 percent and the Big Island at 81.7 percent.
Maui led in rates, charging average daily rates of $213.99. O'ahu had the lowest average rate with $135.25.
Budget properties were the fullest at 92.4 percent, higher than last year. Occupancy at economy and mid-price hotels also made year-over-year gains: 90.2 percent and 89 percent, respectively.
But Hospitality Advisors said that's in part because of a declining room supply in those segments. Budget, economy and mid-price properties saw a combined room loss of 2.7 percent, while room demand for those segments increased by just 1 percent.
Luxury hotels had the lowest occupancy with 83.7 percent. All types of properties, however, saw higher occupancy and room rates compared to February last year.
The monthly hotel survey, compiled by Smith Travel Research with Hospitality Advisors, averages more than 148 properties representing about 48,888 rooms reporting, or 77.2 percent of all lodging properties with 20 rooms or more in the state.
Reach Lynda Arakawa at 535-2470 or larakawa@honoluluadvertiser.com.
Statewide hotel occupancy jumped 3.2 percentage points from February last year to 86.7 percent the same month this year, according to figures released yesterday by Hospitality Advisors LLC. The growth in occupancy was driven in part by a 6.8 percent increase in visitor arrivals and a new February record for Mainland tourists.
A steady stream of visitors travels down Kalakaua Avenue in Waikiki, where hotels enjoyed a strong February — as did hotels statewide.
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