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The Honolulu Advertiser
Posted on: Friday, June 1, 2007

Isle occupancy rates drop for 12th straight month

By Robbie Dingeman
Advertiser Staff Writer

Hawai'i's hotel industry continued to cool in April as occupancy rates fell for the 12th straight month and growth in room rates slowed.

Statewide hotel occupancy fell to 71.1 percent in April, a 5.9 percentage point decrease from April 2006, according to a report released yesterday by Hospitality Advisors LLC. Occupancy has fallen every month on a year-over-year basis since April 2006.

Hospitality Advisors President Joseph Toy said the report showed room rates, which had been increasing in past months, "began to retreat slightly."

While the statewide average daily rose 4.9 percent to $197.67 in April compared with a year earlier, the pace of growth was below the 7.5 rate of increase in the first quarter. Overall revenue from hotel rooms declined 3.6 percent.

Toy said the drop in the occupancy rate can be traced to a variety of factors, including some rooms returning to service after renovations have added to the supply. He also said visitors are choosing alternative accommodations. The number staying at hotels dropped 7.2 percent.

The hotel data follow Wednesday's report by the state Department of Business, Economic Development and Tourism showing a drop in April visitor arrivals.

O'ahu had the best occupancy at 73 percent with average rates that grew by 4.1 percent to $160.74. Maui reported average occupancy of 71.5 percent with an average rate of $269.07.

Kaua'i occupancy fell by 1.3 percentage points to 71.2 percent but its room rate increased by 3.5 percent to $197.99. The Big Island's occupancy rate was 63.8 percent with a daily rate of $211.56.

The March survey, compiled by Smith Travel Research with Hospitality Advisors, included 143 properties representing 46,171 rooms, or 80.6 percent of all lodging properties with 20 rooms or more in the state, including full-service, limited-service and condominium hotels.

Reach Robbie Dingeman at rdingeman@honoluluadvertiser.com.

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