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Hawaii hotels: Flat average daily rate, lower occupancy so far in 2019

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For the first three months of 2019, Hawaii hotels statewide reported flat average daily rate (ADR) and lower occupancy, which resulted in lower revenue per available room (RevPAR) compared to the first quarter of 2018.

According to the Hawaii Hotel Performance Report published by the Hawaii Tourism Authority (HTA), statewide RevPAR declined to $236 (-3.3%), with ADR of $292 and occupancy of 80.8 percent (-2.7 percentage points) in the first quarter of 2019.

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.

For the first quarter, Hawaii hotel room revenues fell by 4.7 percent to $1.13 billion compared to the $1.18 billion earned in the first quarter of 2018. There were more than 74,300 fewer available room nights (-1.5%) in the first quarter and approximately 190,500 fewer occupied room nights (-4.7%) compared to a year ago. Several hotel properties across the state were closed for renovation or had rooms out of service for renovation during the first quarter.

All classes of Hawaii hotel properties statewide reported RevPAR declines in the first quarter of 2019 except Upper Midscale Class properties ($134, +0.6%). Luxury Class properties reported RevPAR of $452 (-5.4%) with ADR of $594 (-1.2%) and occupancy of 76.1 percent (-3.3 percentage points). At the other end of the price scale, Midscale & Economy Class hotels reported RevPAR of $155 (-5.0%) with ADR of $187 (-0.5%) and occupancy of 83.1 percent (-3.9 percentage points).

Comparison to Top U.S. Markets

In comparison to top U.S. markets, the Hawaiian Islands earned the highest RevPAR at $236 in the first quarter, followed by the San Francisco/San Mateo market at $210 (+15.9%) and the Miami/Hialeah market at $208 (-3.5%). Hawaii also led the U.S. markets in ADR at $292 followed by San Francisco/San Mateo and Miami/Hialeah. The Hawaiian Islands ranked fifth for occupancy at 80.8 percent, with Miami/Hialeah topping the list at 83.0 percent (-2.1 percentage points).

Hotel Results for Hawaii’s Four Counties

Hotel properties in Hawaii’s four island counties all reported RevPAR decreases in the first quarter of 2019. Maui County hotels led the state overall in RevPAR at $337 (-2.7%), with ADR at $428 (-0.9%) and occupancy at 78.6 percent (-1.5 percentage points).

Kauai hotels earned RevPAR of $228 (-10.2%), with flat ADR at $305 (+0.2%) and lower occupancy of 74.8 percent (-8.7 percentage points).

Hotels on the island of Hawaii reported a decline in RevPAR to $225 (-9.7%), due to a combination of decreases in both ADR ($285, -2.0%) and occupancy (79.1%, -6.7 percentage points).

Oahu hotels earned slightly lower RevPAR at $196 (-0.9%), with ADR at $236 (+0.8%) and occupancy of 83.0 percent (-1.4 percentage points).

Comparison to International Markets

When compared to international “sun and sea” destinations, Hawaii’s counties were in the middle of the pack for RevPAR in the first quarter of 2019. Hotels in the Maldives ranked highest in RevPAR at $575 (+4.5%) followed by Aruba at $351 (+11.2%). Maui County ranked third, with Kauai, the island of Hawaii, and Oahu ranking sixth, seventh and eighth, respectively.

The Maldives also led in ADR at $737 (+5.2%) in the first quarter, followed by French Polynesia at $497 (-1.1%). Maui County ranked fifth, followed by Kauai and the island of Hawaii. Oahu ranked ninth .

Oahu trailed Phuket (84.5%, -6.3 percentage points) in occupancy for sun and sea destinations in the first quarter. The island of Hawaii, Maui County and Kauai ranked fourth, fifth and ninth, respectively.

March 2019 Hotel Performance

In March 2019, RevPAR for Hawaii hotels statewide declined to $227 (-4.3%), with ADR of $285 (-1.1%) and occupancy of 79.6 percent (-2.7 percentage points).

In March, Hawaii hotel room revenues fell by 5.9 percent to $373.3 million. There were more than 27,200 fewer available room nights (-1.6%) in March and approximately 66,850 fewer occupied room nights (-4.9%) compared to a year ago. Several hotel properties across the state were closed for renovation or had rooms out of service for renovation during March. However, the number of rooms out of service may be under-reported.

All classes of Hawaii hotel properties statewide reported RevPAR declines in March. Luxury Class properties reported RevPAR of $443 (-7.2%) with ADR of $583 (-3.1%) and occupancy of 75.9 percent (-3.4 percentage points). Midscale & Economy Class hotels reported RevPAR of $150 (-2.9%) with ADR of $182 (+0.8%) and occupancy of 82.0 percent (-3.1 percentage points).

Hotel properties in Hawaii’s four island counties all reported lower RevPAR for March. Maui County hotels reported the highest RevPAR in March at $336 (-1.4%) with ADR of $421 (-1.6%) and flat occupancy (79.8%, +0.2 percentage points).

Oahu hotels reported lower occupancy (80.4%, -2.3 percentage points) and flat ADR ($230, -0.2%) for March.

Hotels on the island of Hawaii continued to face challenges in March, with RevPAR dropping 11.2 percent to $216, ADR to $272 (-4.9%) and occupancy to 79.2 percent (-5.7 percentage points).

RevPAR for Kauai hotels fell to $213 (-14.6%) in March, with declines in both ADR to $286 (-4.5%) and occupancy to 74.4 percent (-8.8 percentage points).

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Princess Cruises returns to Tahiti in 2020

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In 2020, Princess Cruises guests will enjoy the welcoming spirit and idyllic islands of French Polynesia when the cruise line returns to Tahiti with the intimate Pacific Princess, offering a series of roundtrip cruises for the first time since 2015. Tahiti and French Polynesia cruises open for sale on April 17, 2019.

Guests will discover a trove of unspoiled treasures with sparkling lagoons and white-sand beaches available on five, 10-day Tahiti & French Polynesia departures, sailing roundtrip from Tahiti (Papeete). Every voyage includes overnight calls in Tahiti’s capital Papeete and romantic Bora Bora, as well as a late-night stay in Raiatea. Additional ports includes Huahine, Rangiroa, and Moorea. Cruise vacations begin Oct. 5, 15, 25 and Nov. 4 and 14, 2020 starting at $1,999.

“Tahiti and French Polynesia lure travelers from all over the world seeking pure unspoiled paradise, snorkeling, swimming adventures and relaxation,” said Jan Swartz Princess Cruises president. “With our return to Tahiti in 2020, Princess Cruises offers the best way to explore this remote island life aboard our intimate Pacific Princess.”

Small ship cruising on Pacific Princess with just 670 guests offers casual elegance, signature Princess Cruises features, warm welcoming service and the special camaraderie that guests always find when sailing with others who share their passion for travel.

“Princess Cruises has a long history with Tahiti and is a highly valued partner showcasing the diversity of our islands, the rich authentic local culture, and the great variety of experiences that await discovery,” notes Paul Sloan, Tahiti Tourisme, Directeur Général and CEO. “We are eagerly looking forward to next year and welcoming Pacific Princess back to The Islands of Tahiti.”

With four Grand Adventure & Crossings itineraries, Pacific Princess also offers longer sailings for guests to experience the Aloha spirit of the Hawaiian Islands or discover the treasures of South America, including Easter Island with its mysterious Moai. A 19- or 29-day Hawaii & Tahiti Grand Adventure cruise departs Vancouver Sept. 16, 2020 and a 25- or 35-day Tahiti, South America & Panama Canal Crossing departs Tahiti on Nov. 14 or 24, 2020.

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Number of Hawaii visitors up but spending down

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Visitors to the Hawaiian Islands spent a total of $1.39 billion in February 2019, a decrease of 2.7 percent compared to February 20181, according to preliminary statistics released today by the Hawaii Tourism Authority. This is another dip following the 3.8 decrease in January.

In February, visitor spending increased from the U.S. West (+4.7% to $503.3 million) but declined from U.S. East (-6.7% to $370.9 million), Japan (-0.8% to $170.1 million), Canada (-0.7% to $150.7 million) and All Other International Markets (-15.3% to $188.7 million) compared to a year ago.

On a statewide level, average daily visitor spending was down slightly (-0.9% to $200 per person) in February year-over-year. Visitors from Japan (+3.3%), U.S. West (+1.2%) and All Other International Markets (+0.7%) spent more per day while visitors from U.S. East (-4.1%) and Canada (-1.0%) spent less.

A total of 782,584 visitors (+0.5%) came to Hawaii in February 2019, up slightly from the same month last year. Arrivals by air service (+0.3% to 766,293) were comparable to last February while arrivals by cruise ships (+12.1% to 16,291) increased. However, total visitor days2 declined (-1.9%) versus February 2018 due to a shorter average length of stay by visitors from most markets.

The average daily census3 of total visitors in the Hawaiian Islands on any given day in February was 248,244, down 1.9 percent compared to February last year. Arrivals by air service realized growth from U.S. West (+6.5%), Canada (+2.5%) and Japan (+1.1%) which offset decreases from U.S. East (-0.9%) and All Other International Markets (-17.2%).

Visitor spending on Oahu decreased (-1.6% to $613.0 million) while visitor arrivals (456,820) were flat compared to last February. Maui recorded increases in both visitor spending (+1.2% to $413.0 million) and visitor arrivals (+1.5% to 220,801). The island of Hawaii saw declines in visitor spending (-17.5% to $192.3 million) and visitor arrivals (-14.8% to 137,502). Visitor spending increased on Kauai (+4.7% to $153.5 million) while visitor arrivals were similar (+0.2% to 104,167) to February 2018.

A total of 1,010,961 trans-Pacific air seats serviced the Hawaiian Islands in February, up slightly (+0.5%) from a year ago. Growth in air seats from Canada (+10.9%), Japan (+6.3%), Oceania (+1.8%), U.S. West (+0.5%) and U.S. East (+0.5%) offset declines from Other Asia Markets (-25.1%).

Year-to-Date 2019

Through the first two months of 2019, visitor spending declined (-2.4% to $3.01 billion) compared to the same period last year. Visitor arrivals increased (+1.8% to 1,603,205) but a shorter length of stay (-1.8% to 9.43 days) resulted in no growth in visitor days. Average daily spending (-2.4% to $199 per person) was lower compared to a year ago.

Visitor spending decreased from U.S. West (-0.8% to $1.06 billion), U.S. East (-1.8% to $832.5 million), Japan (-3.8% to $349.6 million), Canada (-0.4% to $318.3 million) and All Other International markets (-7.5% to $443.2 million).

Visitor arrivals increased from U.S. West (+5.5% to 631,064), U.S. East (+0.7% to 356,943), Japan (+3.3% to 251,488) and Canada (+0.7% to 133,915), but declined from All Other International Markets (-7.9% to 201,981).

Other Highlights:

U.S. West: Visitor arrivals from the Pacific region rose 7.6 percent in February compared to the previous year, with more visitors from Alaska (+13.7%), California (+8.4%), Washington (+6.7%) and Oregon (+2.9%). Arrivals from the Mountain region were up 3.2 percent in February with growth from Arizona (+9.5%) and Nevada (+8.5%), offsetting declines from Utah (-5.7%) and Colorado (-1.3%). Through the first two months, arrivals from the Pacific (+7.4%) and Mountain (+1.8%) regions increased versus the same period last year.

Through February 2019, average daily visitor spending dropped to $182 per person (-2.4%) compared to the same period last year, largely due to decreases in transportation and food and beverage expenses.

U.S. East: Growth in February visitor arrivals from the East South Central (+1.6%) and East North Central (+0.6%) regions were offset by decreases from the West South Central (-4.1%), South Atlantic (-4.0%), New England (-2.4%) and Mid Atlantic (-0.7%) regions compared to a year ago. For the first two months of 2019, arrivals were up from the East South Central (+7.2%), West North Central (+2.6%) and South Atlantic (+0.7%) regions.

For the first two months of 2019, average daily visitor spending declined to $214 per person (-1.4%), largely due to a decline in transportation expenses.

Japan: In February, more visitors stayed in hotels (+5.2%) while stays in condominiums (-16.1%) and timeshares (-7.6%) decreased compared to a year ago.

For the first two months of 2019, average daily visitor spending declined to $238 per person (-4.4%), primarily due to lower lodging and transportation expenses.

Canada: In February, less visitors stayed in condominiums (-7.3%) and hotels (-1.6%). Stays in rental homes (+23.7%) and timeshares (+4.4%) increased from a year ago.

For the first two months of 2019, average daily visitor spending decreased (–0.7% to $177 per person) compared to the same period last year, due to lower shopping as well as entertainment and recreation expenses.

MCI: A total of 57,043 visitors came to the Hawaiian Islands for meetings, conventions and incentives (MCI) in February, an increase of 10.4 percent from last year. More visitors came to attend conventions (+18.6%) and corporate meetings (+2.2%) but fewer traveled on incentive trips (-1.0%). Contributing to the growth in convention visitors was the 2019 International Stroke Conference, held at the Hawaii Convention Center, which brought nearly 6,000 delegates. Through the first two months, total MCI visitors grew (+10.5% to 116,310) compared to the same period last year.

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Hawaii Tourism: Hawaii hotels’ occupancy, revenue down in February 2019

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In February 2019, Hawaii hotels statewide reported decreases in both average daily rate (ADR) and occupancy, which resulted in lower revenue per available room (RevPAR) compared to February 2018.

According to the Hawaii Hotel Performance Report published by the Hawaii Tourism Authority (HTA), statewide RevPAR declined to $242 (-4.2%), with ADR of $290 (-1.2%) and occupancy of 83.4 percent (-2.6 percentage points) (Figure 1) in February.

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.

In February, Hawaii hotel room revenues fell by 5.6 percent to $360.0 million. There were more than 22,000 fewer available room nights (-1.5%) in February and approximately 58,000 fewer occupied room nights (-4.5%) compared to a year ago (Figure 2). Several hotel properties across the state were closed for renovation or had rooms out of service for renovation during February.

All classes of Hawaii hotel properties statewide reported RevPAR declines in February, except Upper Midscale Class properties ($149, +2.5%). Luxury Class properties reported RevPAR of $447 (-6.2%) with ADR of $574 (-2.2%) and occupancy of 77.9 percent
(-3.4 percentage points). At the other end of the price scale, Midscale & Economy Class hotels reported RevPAR of $154
 (-10.3%) with ADR of $181 (-6.8%) and occupancy of 85.3 percent (-3.4 percentage points).

Among Hawaii’s four island counties, only Oahu hotels reported ADR growth for February ($237, +1.2%). This increase was counter-balanced by a 1.0 percentage point decrease in occupancy to 86.4 percent, resulting in no RevPAR growth in February ($205) compared to a year ago.

Maui County hotels reported a decline in RevPAR to $337 (-4.5%) in February but led the state overall. Both ADR ($420, -2.9%) and occupancy (80.3, -1.3 percentage points) decreased year-over-year.

Hotels on the island of Hawaii reported a drop in RevPAR to $233 (-13.5%) in February, with lower ADR ($285, -5.8%) and occupancy (81.8%, -7.3 percentage points) compared to February 2018.

Kauai hotels’ RevPAR fell to $230 (-12.3%) in February, with declines in both ADR to $306 (-1.3%) and occupancy to 75.1 percent (-9.4 percentage points).

All of Hawaii’s resort regions reported RevPAR and occupancy losses in February. Only Waikiki properties were able to raise ADR for the month ($232, +1.0%) compared to a year ago.

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