Posted on: Friday, April 29, 2005
It's been a good year so far for Isle hotels
| • | Charts: March hotel occupancy/Top hotel markets - 1st quarter 2005 |
By Lynda Arakawa
Advertiser Staff Writer
Hawai'i hotels had a higher occupancy rate and got more money per room than any of the top 25 hotel markets in the nation in the first quarter.
Statewide hotel occupancy was 84.2 percent in the first three months, up 5.1 percentage points over the same period last year, according to Hospitality Advisors LLC. Miami had the second highest occupancy at 82.1 percent.
Statewide average daily rates for the first quarter increased 7.4 percent to $163.98, ranking second in the nation behind New York City. Still, Hawai'i's revenue per available room of $137.99 topped the nation's top 25 markets.
Hawai'i's hotel industry also brought in a record $782.3 million in the first quarter. O'ahu hotels drove much of the statewide growth during the first quarter primarily because of a stronger meetings, convention and incentive market.
"It's been a good year so far," said Peter Schall, senior vice president for Hilton Hotels Corp. in Hawai'i. "Overall tourism in general has been very favorable for Hawai'i (with) the strengthening of the economy in the domestic market and the improvement in Japan. And I believe Hawai'i is a very desirable destination from an environmental and from a safety standpoint.
"If the economy continues as it is and in the Japan market nothing dramatically changes, the balance of the year should look very favorable."
Statewide room demand for the quarter increased 4 percent to 4.8 million room nights sold, while hotel room inventory fell 1.1 percent to 5.7 million rooms, partly because of conversions to condominiums and time-shares.
Figures for last month show the hotel industry set new March records in occupancy and average daily rates. Statewide hotel occupancy last month was 85.4 percent, up 4.6 percentage points compared with March last year. Average daily rates grew from $154.64 in March 2004 to $168.26 last month.
The hotel numbers were driven by record visitor arrivals last month. Tourism officials attributed a surge in Mainland visitors to an early spring break in March, a month earlier than last year.
Statewide room revenue last month was $280.9 million, a 14 percent increase over March last year, thanks to luxury and upscale properties, which led other categories in revenue gains of 14.8 percent and 20.3 percent, respectively.
"I think that part of the success in this regard for Hawai'i is the intensive Waikiki rejuvenation of the last several years," said Peter Shaindlin, chief operating officer of Halekulani Corp. "Between marketing efforts and word of mouth by return visitors, the word is out loud and clear that Waikiki in particular is going through a renaissance period and we're starting to all experience the benefits.
"Of course it's a little bit early, but we're optimistic that the second quarter should be equally successful" as the first for Halekulani, he said.
All islands saw March year-over-year increases in occupancy, daily rates and revenue per available room. O'ahu had the highest occupancy of 87.3 percent, and the Big Island had the lowest at 79.1 percent.
Maui hotels commanded the highest average daily rate of $226.93, with O'ahu rates the lowest at $133.25.
All property categories, from budget to luxury, also improved in occupancy, rates and revenue.
The monthly hotel survey, compiled by Smith Travel Research with Hospitality Advisors, averages more than 148 properties representing about 49,055 rooms reporting, or 77.8 percent of all lodging properties with 20 rooms or more in the state, including full-service, limited service and condominium hotels.
Reach Lynda Arakawa at larakawa@honoluluadvertiser.com or at 535-2470.
