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The Honolulu Advertiser
Posted on: Saturday, October 6, 2007

Hawaii hotel occupancy slips

By Robbie Dingeman
Advertiser Staff Writer

ABOUT THE SURVEY

The Smith Travel Research/Hospitality Advisors monthly survey of Hawai'i hotels is the largest survey of its kind in the state. For more information, visit Hospitality Advisors' Web site at www.hospitalityadvisors.com.

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Despite small increases in visitor arrivals and visitor days, Hawai'i's statewide hotel occupancy dipped by 2.7 percentage points to 81.2 percent for the month of August.

The state Department of Business, Economic Development and Tourism earlier reported a 3.5 percent increase in visitor arrivals and a 2.9 percent gain in visitor days for the month. The hotel survey, released yesterday, is compiled by Smith Travel Research in conjunction with Hospitality Advisors.

However, the number of hotel room nights sold still fell short of last August by 3.8 percent. But there was some good news for hotel officials in the prices they can charge for rooms.

Statewide average daily room rates continued to grow, increasing by 5.7 percent to $213.60 and setting another record high for the month.

Driven by higher room rates, statewide revenue per available room also reached an all-time high of $173.45 for a 2.2 percent gain over last year.

LUXURY REIGNS

The best economic news came statewide for luxury hotels, which outperformed all classes of properties, showing an average occupancy of 84.0 percent and achieving an average room rate of $325.74.

Statewide midprice hotels reported a slight — 1.3 percentage point — occupancy decline to 78.7 percent, while average daily rate grew by 9.1 percent to $134.43.

And occupancy statewide for lower priced — economy and budget — properties fell by 7.2 percentage points and 11.6 percentage points to 78.0 percent and 78.6 percent, respectively.

By island:

  • Kaua'i led all islands in occupancy at 85.6 percent, representing a 3.8 percentage point increase over last year. Kaua'i average daily room rate also improved by 5.7 percent to $217.23.

  • On Maui, occupancy reached 81.6 percent, with the Lahaina-Ka'anapali-Kapalua resort region reporting an average occupancy of 86.6 percent. Maui room rates increased by 5.9 percent to $287.97.

    Hotels in the luxury resort region of Wailea achieved its highest August average daily room rate on record at $487.77.

  • O'ahu occupancy fell by 3.6 percentage points to 82.7 percent, while O'ahu average daily room rate grew by 7.4 percent.

  • The Big Island saw occupancy decrease 3.8 percentage points to 72.8 percent, while average daily room rate increased by 3.5 percent to $209.59.

    The survey, compiled by Smith Travel Research with Hospitality Advisors, included 153 properties representing 46,998 rooms, or 83.3 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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