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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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The Development and Promotion of MICE in Thailand

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The Thailand Convention & Exhibition Bureau (TCEB) is leveraging the development of Thai MICE business in long haul markets in collaboration with foreign chambers of commerce representing Australia, UK, USA and Germany.
​Mr. Chiruit Isarangkun Na Ayuthaya, President of Thailand Convention & Exhibition Bureau (Public Organization) or TCEB, disclosed, “The signing of this MOU – The Development and Promotion of MICE –  between TCEB and Foreign Chamber Alliance (FCA), comprising 4 chambers of commerce representing our main target countries, which are Australia, UK, USA and Germany.
It’s considered another remarkable step of TCEB in altering our role to leverage MICE by serving as a business partner who joins hands with foreign organisations to promote the development of Thai MICE in international markets, as well as to penetrate into long haul MICE markets in Oceania, Europe and the USA, side by side with our main short haul target markets in Asia.
“Indeed, the collaboration is a new dimension of promoting Thai MICE business in long haul markets with concentration on Oceania, Europe and the USA. This is the very first time that the Foreign Chamber Alliance – FCA, which represents Australia, UK, USA and Germany, signed an MOU with a Thai government agency. Interestingly, FCA has more than 20,000 members that include businessmen, investors, entrepreneurs from business, industrial and service sectors, such as Minor Hotels Group, AccorHotels Group, Marriott Hotels Group, convention centres business, as well as oil, mining, pharmaceutical, automobile and other industries,” he added.
“These are considered high potential business groups for propelling the national economy and are included among the targeted industries that the Thai government is keen to encourage in line with the 4.0 Policy. For this reason, this is a lucrative opportunity for us to collaborate to develop and raise the competitiveness of Thai MICE. The 4 chambers of commerce have recognised the importance of using MICE as the gateway to the development of commerce and investment in Thailand and ASEAN,” he said.
With this MOU, the framework for the development of MICE business will embrace 5 dimensions of operation:
• The sharing of MICE statistics and events
• MICE business development
• MICE market promotion
• MICE business research
• MICE personnel development.
Mr. Chiruit further said, “The initial collaboration to mutually promote MICE business will mainly focus on hospitality service, because members of the FCA have long records of investment in Thailand, which have been running alongside their nationwide service businesses. Hence, they have eyed to extend collaboration with Thai government agencies, as they believe the endeavour will open a new door to operate MICE business in Thailand and ASEAN.
“This, in turn, will allow them to study about the dynamics and direction of the Thai MICE market. By joining with TCEB in formulating a marketing development scheme, the synergy will open a new door to connecting with other alliances who relate with the promotion of Thai MICE business in targeted countries. Moreover, there will be co-operation in drawing international events into Thailand, marketing promotion and provision of support for events previously held in Thailand,” he said.
“Target groups and alliances will be invited to participate to strengthen the potential of MICE events held here in Thailand. The FCA will join with us in the exchange of marketing information related to targeted industries held by allied chambers of commerce and TCEB will exchange information on Thai MICE business, including statistics and events, to fully bolster mutual MICE business development,” said the TCEB President.

​He went on to say, “Nevertheless, the FCA expects the Thai government to leverage the competitiveness of Thai MICE business in order to serve global competition. For example, facilitation of customs and immigration procedures; development of infrastructure and transportation; construction of convention centres; development of MICE personnel that meets international standards, and establishment of One-Stop-Service MICE centres. All of which will open a new door to the holding of MICE events in Thailand by efficiently offering enhanced convenience for MICE entrepreneurs and organisers,“ he declared.

Proposals to establish MICE service centres has been included in TCEB’s earlier strategic plan, and the Ease of Doing Business project as well  as the draft of a national strategy of NESDB (National Economic and Social Development Council).
​Mr. Chiruit went on to explain, “After the completion of MOU signing, TCEB is set to discuss with the FCA on the preparation of Phase I work plan, which lasts two years. Both parties will encourage practical co-operation in a rapid and consistent manner. Initially, we have planned to attract events and provide support to the holding of events that relate to targeted industries according to the government’s 4.0 Policy, particularly in the provinces governed by the administration of EEC (Eastern Economic Corridor),” he said.

​“TCEB expects that the collaboration will not only leverage the competitiveness of Thai MICE in long haul markets in Oceania, Europe and the USA, but will also help to attract international events into several regions in Thailand, especially those considered main markets in MICE City project, which are Bangkok, Pattaya, Phuket, Chiang Mai and Khon Kaen. Definitely, we believe the rapport will encourage transfers of technology and knowledge of each industry among one another, and thus will promote advancement in all regions and stimulate income distribution to communities nationwide,” concluded Mr. Chiruit.

Mr. Benjamin Krieg, Vice President, Austcham, explained, “The role of the Foreign Chamber Alliance (FCA) in Thailand and the purpose of signing the MOU combines key Foreign Chambers and their members through this important collaboration, we provide a common voice on advocacy to develop and grow opportunities that can benefit our members and the country of Thailand,” he said.

“The MICE industry is growing, and will also continue to grow in importance and contribution to the overall tourism sector within Thailand, and of course the greater Thai economy. Our primary aim is to continue to increase and grow the competitiveness of Thailand as a leading destination for MICE not only within Asia, but the world, further complimenting the amazing tourism industry that we already are so fortunate to be a part of,” concluded Mr. Krieg.

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Akaryn Hotel expansion: Aleenta Mountain Retreat in Bali and Akyra resort in Hoi An

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Akaryn Hotel Group, a Thailand based boutique hotel specialist, is preparing to expand into international markets for the first time, with the launch of its pioneering hospitality brands in Indonesia and Vietnam.

In the coming months, two of the group’s hotel concepts will make their international debuts. Aleenta, the original barefoot luxury brand that first launched in Thailand in 2004, will be introduced to Bali, Indonesia’s “Island of the Gods”, and akyra, the trend-setting boutique brand, will arrive in Hoi An, the UNESCO World Heritage-listed port town in central Vietnam.

Aleenta Retreat Bali will be a spiritual sanctuary in the island’s mountainous north, an hour’s drive from Ubud. Designed in a classical low-rise Balinese style, this serene wellness retreat will feel a million miles away from the busy tourist resorts in the island’s south. Nestled in the lush, jungle-clad hills, this exquisite hideaway will allow guests to relax and reconnect with each other in paradise. The 50 rooms will be large and luxurious, whilst also exuding authenticity and being equipped with the latest amenities.

A spa village and yoga resort, Aleenta Retreat Bali will feature an extensive Ayurah Wellness centre, where guests can unwind with an array of soothing treatments, including traditional Balinese massages and natural therapies. An outdoor yoga area will overlook reflective ponds and a fitness centre will allow guests to enjoy an invigorating workout in paradise.

A choice of restaurants will focus on fresh, organic ingredients, while the Pool Bar will serve refreshing drinks during the day and after dark. Local handicrafts will be available at the Galleria boutique, and guests will have plenty of opportunities to head out and discover the local area, including Ubud, Bali’s cultural capital. Aleenta Retreat Bali will also provide an elegant setting for weddings and functions, with a choice of indoor or alfresco event spaces.

“Aleenta was our first brand and our pioneering resorts in Phuket and Hua Hin have become hugely popular among guests. Every Aleenta property is designed to reflect the timeless charm and character of its destination, featuring large living spaces and world-class facilities while also operating in harmony with the environment. Aleenta Retreat Bali will be a fantastic addition to our portfolio; secluded, spiritual and sensual, this sublime sanctuary will allow guests to discover the true essence of the Island of the Gods,” said ,” said AKARYN Hotel Group’s Founder and Managing Director, Anchalika Kijkanakorn.

Also opening its doors in 2019 will be akyra Hoi An, unique waterfront resort nestled midway between Hoi An’s historic town centre and golden China Beach. Located on the banks of the Thu Bon estuary, this low-rise boutique retreat will be accessible either by car or by boat and many of the 110 stylish rooms and pool villas will sit on the water’s edge.

Guests can soak up this stunning setting with a morning yoga class, a spa treatment at the Ayurah Wellness centre, a dip in the onsen or a workout in the modern fitness centre. Alternatively, they can simply plunge into the inviting outdoor infinity pool. Young guests will be kept entertained at the kids’ club, and all ages can discover delectable Vietnamese and international cuisine at a choice of two restaurants and a pool bar.

akyra Hoi An will provide the perfect balance between cultural exploration and tropical relaxation; the enchanting port town of Hoi An, with its diverse heritage and alluring architecture, is just a short distance away, while the golden sand and azure sea of Vietnam’s central coast is also easily accessible. It will also provide a spectacular setting for events and dream weddings.

“With its peaceful and picturesque waterfront setting, halfway between the city and the sea, akyra Hoi An will allow visitors to discover everything this charming destination has to offer. Guests who have experienced akyra’s hotels and resorts in Bangkok, Phuket and Chiang Mai will be familiar with the brand’s trend-setting style. We look forward to introducing guests to a new era of contemporary, cutting-edge hospitality in this idyllic location,” Anchalika added.

AKARYN Hotel Group currently operates a collection of captivating boutique hotels and resorts across Thailand, including Aleenta Hua Hin-Pranburi, Aleenta Phuket-Phang Nga, akyra Beach Club Phuket, akyra Manor Chiang Mai, akyra Thonglor Bangkok and the most recent addition to its portfolio, akyra TAS Sukhumvit Bangkok. The group will continue to introduce its luxurious and personalised style of Asian hospitality to even more destinations across the region in the months and years ahead.

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Centara identifies technological and social trends that will shape the hospitality industry in the next 10 years

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Global hospitality is at a crossroads. In the last 20 years, technology has transformed every aspect of the guest journey, from online bookings to in-room services to post-stay feedback. But as technology continues to evolve and advance, what will the hotel industry look like 10 years in the future?

In the past, digitalization was largely driven by companies, as new solutions were introduced to enhance efficiency and target customers more effectively. In the modern era however, it is customers who are demanding greater connectivity. This is especially true in the hotel industry, which is driven by modern lifestyle trends and the “always-on” mindset of millennial travelers.

In light of these trends, Markland Blaiklock, Centara’s Deputy Chief Executive Officer, explains his vision for the future of the hospitality industry in the next decade:

“Ten years from now, I’m sure we will look back and see that the hospitality industry changed much more than predicted, and Asia will continue to be a major catalyst for change. This evolution will be part social and part technological, but the overall goal will be the same: to meet and exceed guests’ expectations,” he commented.

According to Mr. Blaiklock, Centara foresees three significant trends shaping its business, and the entire industry, going forward:

Travel and work life will become inseparable thanks to improved technology and faster connectivity. This trend will occur in all countries but will be led by China and the rest of Asia, which are currently driving the growth in overseas travel. The launch of Centara’s new “Meetings Redesigned” MICE initiative will help to accommodate this shift, by allowing companies to be more flexible and creative with their event agendas.

Robotics and artificial intelligence will create hyper-connected hotel experiences. The Internet of Things (IoT) will seamlessly connect every hotel touchpoint, which will be personalized to the unique preferences every guest. In addition, big data insights will enable hotel staff to improve service quality in real time.

Delivering emotional experiences will be the ultimate goal of hotels. As technology takes over, many guests will go in search of authenticity, human interaction and genuine hospitality. The ability to predict and identify human emotions will be key to the success of hotels in the coming decades.

The big question for hoteliers now and in the future will be: how do we successfully integrate technology to improve the guest’s entire journey, whilst also retaining our distinct personality and brand loyalty?

For Centara Hotels & Resorts, Thailand’s leading hotel operator, this balance is at the core of its strategic vision. In the coming years decades, the group will focus delivering warm Thai hospitality in line with the latest social and technological trends to create exceptional customer experiences.

Centara has proven adept at developing new brands that embrace innovation. The most recent example is COSI, which caters for young-minded and tech-savvy travelers with friendly, simple and affordable accommodation and state-of-the-art amenities like smartphone integration, self-service check-in and a 24-hour lifestyle café concept. It is no surprise that this contemporary concept, which made its debut in Koh Samui in 2017, is now a key driving force behind Centara’s expansion strategy.

In many ways, COSI represents the future of hospitality. Its combination of connectivity, comfort and convenience enables guests to blend business and leisure travel, a key trend identified by Mr. Blaiklock. Across all of Centara’s six brands however, the group continues to roll out innovative new digital experiences.

Recent initiatives range from revamping the Centara website and mobile app for a seamless online experience, to launching a new central reservation system and revenue management system for global coordination. The new Chinese language, China-hosted website, social media pages and payment solutions are also positioning Centara to compete successfully in the world’s largest travel market.

Technology, however, is only one element of a successful strategy. Hotel guests will always be human beings, and the majority of humans visit a destination to experience its charm and culture, not to look at a screen. For Centara, the ability to deliver authentic Thai hospitality is something that can never be replaced by technology. By harnessing big data and personalization tools however, hoteliers can enhance every human interaction. Intuitive and rewarding loyalty programs like CentaraThe1 will play a major part in anticipating and delivering tailored experiences.

So digitalization really is the key; by using smart technology to identify and satisfy guest preferences, the hoteliers of the future will be able to create truly bespoke experiences for every guest.

Centara Hotels & Resorts is Thailand’s leading hotel operator. Its 68 properties span all major Thai destinations plus the Maldives, Sri Lanka, Vietnam, Laos, China, Oman, Qatar and the UAE. Centara’s portfolio comprises six brands -Centara Grand Hotels & Resorts, Centara Hotels & Resorts, Centara Boutique Collection, Centra by Centara, Centara Residences & Suites and COSI Hotels – ranging from 5-star city hotels and luxurious island retreats to family resorts and affordable lifestyle concepts supported by innovative technology. It also operates state-of-the-art convention centers and has its own award-winning spa brand, Cenvaree. Throughout the collection, Centara delivers and celebrates the hospitality and values Thailand is famous for including gracious service, exceptional food, pampering spas and the importance of families. Centara’s distinctive culture and diversity of formats allow it to serve and satisfy travelers of nearly every age and lifestyle.

Over the next five years Centara aims to double its size with additional properties in Thailand and new international markets, while spreading its footprint into new continents and market niches. As Centara continues to expand, a growing base of loyal customers will find the company’s unique style of hospitality in more locations. Centara’s global loyalty program, Centara The1, reinforces their loyalty with rewards, privileges and special member pricing.

For more information about Centara, please visit centarahotelsresorts.com.
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Oxford Economics: Brand USA’s marketing initiatives drove record international visitor spending

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Today, Brand USA, the destination marketing organization for the United States, announced that a study by Oxford Economics shows Brand USA’s marketing efforts are generating a high return on investment (ROI) and driving significant incremental international visitation and spend, which is helping to fuel the nation’s economy. The report shows Brand USA has consistently driven strong results over the past six years, including record results in Fiscal Year 2018 (FY2018) for incremental international visitor spending, tax revenues generated, and total economic impact.

Highlights of the study show Brand USA’s marketing efforts in FY2018 alone (October 1, 2017 – September 30, 2018) helped drive:

• 1.13 million incremental international visitors to the USA who spent
• $4.1 billion on travel and fare receipts with U.S. carriers, and generated
• $1.17 billion in federal, state, and local taxes and
• $8.9 billion in total economic impact, and supported
• 52,305 incremental U.S. jobs

The resulting FY2018 marketing ROI was 32:1—meaning that every $1 Brand USA spent on marketing generated $32 in spend by international visitors.

The study also shows that the cumulative results of Brand USA’s marketing efforts over the past six years (FY2013 through FY018) has helped bring:

• 6.6 million incremental visitors to the USA who spent
• $21.8 billion on travel and fare receipts with U.S. carriers, and generated
• $6.2 billion in federal, state, and local taxes, and
• $47.7 billion in total economic impact, which has supported, on average,
• Nearly 52,000 incremental U.S. jobs each year

The six-year results equate to an average marketing ROI of 28:1.

“International visitation is an important driver for the nation’s economy—benefiting a wide range of industries well beyond travel and tourism,” said Christopher L. Thompson, president and CEO of Brand USA.

According to the U.S. Department of Commerce, international travel to the United States is the nation’s top services export and represents 11 percent of all U.S. exports, contributing a $77.4 billion trade surplus.

“The FY2018 ROI study reinforces the effectiveness of our promotional campaigns and how our efforts are supporting communities and employment throughout the country. The United States provides international travelers more value in its diversity of experiences than any other place in the world, and we look forward to continuing to work with our partners to market the USA as the ultimate travel destination,” added Thompson.

Each year, Brand USA deploys a number of market-driven platforms and programs as part of its mission to increase incremental international visitation, spend, and market share for the United States in order to fuel the U.S. economy and enhance the image of the USA with worldwide travelers.

Brand USA also collaborates with federal partners to communicate U.S. visa and entry policies and correct misperceptions about those policies as required by the Travel Promotion Act.

The Oxford Economics study includes an analysis of Brand USA’s work in nine markets – Australia, Brazil, Canada, China, Germany, Japan, South Korea, Mexico, and the United Kingdom—and also considers the organization’s total impact in other international markets where Brand USA’s marketing was active during the year via consumer, trade outreach, and cooperative marketing programs.

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