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The Honolulu Advertiser
Posted on: Monday, November 12, 2007

Hawaii hotel occupancy down

By Robbie Dingeman
Advertiser Staff Writer

Statewide hotel occupancy slipped by 2.1 percentage points to 74.8 percent in September from the same month a year earlier, but high daily room rates kept overall hotel revenue strong for the month, according to a report released today.

It was the 17th straight month that hotel occupancy declined on a year-over-year basis. The data come on the heels of a report released by the state Department of Business, Economic Development and Tourism that showed a 1 percent decline in visitor arrivals in September.

Visitors using hotel accommodations also fell by 3.8 percent through September, which contributed to the softening in hotel room demand, according to Hospitality Advisers president Joseph Toy. The hotel survey is compiled by Smith Travel Research in conjunction with Hospitality Advisors.

Toy said Hawai'i's luxury market led strong room rate growth into September with statewide average daily room rate increasing by 6.9 percent to $181.40 for the month.

Despite softer market performance, Hawai'i continued to rank as one of the top five lodging destinations in the nation with hotel occupancy ranked third behind New York and Los Angeles.

Toy said Hawai'i's luxury hotels increased daily room rates. He said Wailea on Maui saw a 12.5 percent increase to $346.05, which combined with a 1.2 percentage point occupancy gain.

But he noted that all other classes of property showed occupancy declines, with budget properties showing drop-offs in both occupancy and daily room rates.

O'ahu occupancy fell by 1.8 percentage points to 79.4 percent. However, O'ahu room rates increased by 11.6 percent to $166.01.

Maui posted a 2.2 percentage point decline to 73.7 percent, but earned a 5.0 percent average daily room rate gain to $219.34.

Kaua'i occupancy edged ahead by 0.4 percentage points to 77 percent and managed a 5 percent average daily room rate increase to $188.77.

Occupancy on the Big Island fell by 5.6 percentage points to 59.2 percent, while the average daily room rate held relatively flat at $171.84.

Looking at the year-to-date revenues, Toy said the higher room rates meant that hotels in Hawai'i generated nearly $2.4 billion in room revenue through the first three quarters of the year.

The survey included 154 properties representing 46,616 rooms, or 83.1 percent of all lodging properties with 20 rooms or more including hotels and condominiums.

Reach Robbie Dingeman at rdingeman@honoluluadvertiser.com.

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