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The Honolulu Advertiser
Updated at 2:33 p.m., Tuesday, March 4, 2008

Hotel occupancy rises for first time in 21 months

By Robbie Dingeman
Advertiser Staff Writer

Hawai'i hotel occupancy rose in January, for the first time since April 2006, according to an industry report released this afternoon.

Hotel occupancy increased 1.7 percentage points to 75.7 percent, boosted by a 4.1 percent increase in January visitor arrivals according to data compiled by Smith Travel Research and Hospitality Advisors LLC.

The average room rate rose again in January, growing by 6.5 percent to $213.49. Revenue per available room, a key gauge of a hotel operator's performance, rose to $161.68, helped by convention goers, sports travel and an upswing in independent travelers.

The state Department of Business, Economic Development and Tourism reported last week that January visitor arrivals were up to total of 597,126 visitors who traveled to the Islands by air and ship in January.

Visitors also stayed longer — an average of 10.54 days, a 3.3 percent increase from a year earlier.

Another bright spot in the visitor data, was Maui's Wailea area, which reported a 25.7 percent increase in revenue per available room to $347.17 in January.

Overall, Maui statistics were strong, with 1.0 percentage point increase to 77.2 percent and an average daily rate hike of 9.1 percent o $282.58 per night.

O'ahu occupancy also increased, improving by 1.8 percentage points to 76.7 percent.

Kaua'i rose 3.2 percentage points pushing occupancy to 73.1 percent and average daily rate up 6.7 percent to $217.15. The Big Island of Hawai'i pushed up 1.4 percentage points to 71.2 percent occupancy and posted an increase of 7.7 percent in average daily rate that went to $223.27.

Lower-priced "economy" hotels were the only one category of hotels to decrease, with a 1.2 percentage slip in January to 79.8 percent.

Reach Robbie Dingeman at rdingeman@honoluluadvertiser.com.