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The Honolulu Advertiser
Posted on: Thursday, September 6, 2007

Hawaii hotel occupancy dropping

By Robbie Dingeman
Advertiser Staff Writer

Hawai'i's hotel occupancy dropped by 5.6 percentage points in July while average hotel rates hit a record for the month, according to a report released yesterday.

The average occupancy rate statewide fell to 81 percent, according to the report from Hospitality Advisors LLC. Hotel occupancy has fallen every month on a year-over-year basis since April 2006.

The average daily room rates statewide grew by 4.6 percent to $210.49, representing a new record high for the month of July. Despite the higher room rates, however, softer demand resulted in a 2.2 percent drop in revenue per available room to $170.57.

The survey, compiled by Smith Travel Research with Hospitality Advisors, included 153 properties representing 46,841 rooms, or 82.8 percent of all lodging properties.

Hospitality Advisors President Joseph Toy said the statistics are not bad, although they're clearly not as good as they had been during two boom years. "Eighty-one percent occupancy state-wide is actually pretty good," he said.

And the pace for people scheduling travel to the Islands peaked during the summer compared to spring. Toy said travelers took longer to commit to their travel plans, but many still chose the Islands for their vacation.

Kaua'i posted a 5.6 percentage-point gain in occupancy to 86.2 percent for July. Maui continued to lead the state in room rates at $294.42. Wailea, Maui, in particular, saw a 13.7 percent increase to $489.20.

Hotel occupancy on O'ahu declined by 9.9 percentage points to 81.5 percent because of softer demand and reintroduction of renovated properties. Big Island occupancy slipped by 1.8 percentage points to 75.4 percent.

Reach Robbie Dingeman at rdingeman@honoluluadvertiser.com.

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