Hotels in the Hawaiian Islands averaged a record $212 in revenue per available room (RevPAR) for all of 2017, an increase of 5.4 percent compared to 2016, according to the Hawaii Hotel Performance Report released by the Hawaii Tourism Authority (HTA).
HTA’s Tourism Research Division issued the report’s findings utilizing data compiled by STR, Inc., which conducts the largest and most comprehensive survey of hotel properties in the Hawaiian Islands.
The average daily rate (ADR) of $264 in 2017 for hotels statewide also set a new annual record for Hawaii, an increase of 4.1 percent, or $10, compared to 2016. Hotel occupancy statewide averaged 80.0 percent in 2017, an increase of 1.0 percentage points over 2016. The highest average of annual statewide occupancy was in 2005 at 81.1 percent.
On a statewide basis, all classes of hotel properties in Hawaii performed better in 2017 compared to 2016. Luxury class properties reported increases in RevPAR to $394 (up 6.2 percent) and ADR to $525 (up 4.5 percent), with occupancy of 75.1 percent (up 1.2 percentage points).
Midscale and Economy Class hotels reported the highest growth in RevPAR for the year to $119 (up 6.6 percent), supported by increases in average daily rate to $153 (up 3.4 percent) and occupancy of 77.9 percent (up 2.4 percentage points).
“Coming into 2017 the outlook was soft for the hotel industry, particularly in the third quarter, but the rates that hotels commanded, and the revenues generated, turned out to be far greater than anyone anticipated on a statewide level,” said Jennifer Chun, HTA director of tourism research, in a written release.
The average growth in annual RevPAR was strongest on the neighbor islands in 2017. Maui County at $272 (up 8.9 percent), Kauai at $200 (up 8.6 percent), and Hawaii Island at $185 (up 11.7 percent) all reported strong increases in RevPAR supported by growth in both ADR and occupancy. Oahu, by comparison, averaged modest growth in RevPAR to $194 (up 1.7 percent), which was driven by higher ADR to $233 (up 2.5 percent), as occupancy of 83.3 percent (down 0.7 percentage points) declined slightly in 2017 versus 2016.