Hotel occupancy on rise

By Lynda Arakawa
Advertiser Staff Writer

Record-high Mainland visitor arrivals helped boost Hawai'i's hotel industry in November, as hotels continued to see improved occupancy and room rates.

For the year through November, hotels statewide generated nearly $2.5 billion in room revenue, on pace to beat the $2.7 billion record set in 2000.

Statewide room demand rose by 7.3 percent to nearly 1.4 million room nights sold in November, and the average daily room rates increased 5.8 percent to $142.29.

Room revenue was $195.8 million, up 9.2 percent over the same period in 2003.

Hotels were boosted by a 5 percent growth in visitor arrivals in November, with domestic visitors hitting a record.

All hotel markets except midprice properties, which fell slightly from 69.3 percent to 67.7 percent, saw improved occupancies.

Luxury hotel revenue per available room rose 12.2 percent to $168.20, thanks to an increase in high-end travelers from the U.S. East and honeymooners.

Economy and budget hotels also showed solid growth with increases in revenue per available room of 15.2 percent and 11.9 percent, respectively.

All islands saw increases in hotel occupancies and room rates. O'ahu hotels had the highest occupancy at 75.5 percent, followed by Kaua'i (71.5 percent), Maui (70.7 percent) and the Big Island (62.5 percent).

Hospitality Advisors also reported a sharp jump in Waikiki hotel occupancy during the days surrounding the Dec. 12 Honolulu Marathon.

Hotel occupancy was at about 67 percent on Dec. 7. It steadily grew and peaked at 91.8 percent the day before the marathon.

The hotel survey, compiled by Smith Travel Research with Hospitality Advisors, averages more than 150 properties representing about 50,170 rooms reporting, or 78.6 percent of all lodging properties with 20 rooms or more in the state.

Reach Lynda Arakawa at larakawa@honoluluadvertiser.com or at 535-2470.