Want proof the hotel industry is making a strong comeback? Look at Hawaii. According to new data from Hospitality Advisors and STR, total room revenues for Hawaii hotels reached an all-time high for October of $249.7 million, while average daily room rates rose nearly 8 percent from the year before.
An increase in the number of tourists and higher room rates helped push up hotel revenues 11.6 percent in October and put the state industry on track to set a year-end hotel room revenues record, according to the Honolulu Star Advertiser.
Revenue per available room grew for the 32nd consecutive month to $141.35, a 10.8 percent gain from the same time a year ago.
Occupancy statewide grew 2.1 percentage points to 74.5 percent, while the average statewide daily room rate rose 7.7 percent to $189.73, compared to October 2011.
Oahu saw the largest gain in room rates, while the Big Island had the largest gain in occupancy in October.
The average daily room rate in October was $180.21, which was a 10.7 percent increase from the year before, while occupancy grew 0.8 percentage points to 82 percent, the highest in the state, according to the report.
Occupancy on the Big Island grew 6.5 percentage points to 61.4 percent, while room rates rose 6.2 percent o $238.60.
Maui hotels saw average daily room rates grow by 3.5 percent to $217.27 while occupancy rose 2.7 percentage points to 69.1 percent. On Kauai, occupancy increased by 0.5 percentage points to 68 percent, while ADR rose 2.7 percent to $198.03.
The Big Picture
However, according to one expert, RevPAR still has a very long way to go, nationwide. As Joel Ross, a principal of Citadel Realty Advisors, points out, actual October 2012 data from STR shows RevPAR at $67.18 and ADR at $106.34. That means RevPAR is still 13.2 percent behind the peak in 2008, and ADR is still 5.8 percent behind.
"Given that nobody objectively outside the hotel industry thinks the economy is going to grow much in 2013 and could possibly stall depending on what the geniuses in Washington, D.C. do, it is highly likely there will be minimal progress in inflation, RevPAR and maybe minimal growth in real ADR increases," he said.