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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.


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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

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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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Mr. C Coconut Grove: South Florida’s newest boutique hotel officially opens

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Mr. C Coconut Grove, the first Mr. C hotel to debut in Florida, has officially opened its doors to begin welcoming guests. Mr. C Coconut Grove is the third property operated by the Cipriani brothers, who currently operate a 138 key luxury property in Beverly Hills, California and a 66 key luxury property located in the lower Manhattan neighborhood of the Seaport District New York.

“We are excited to officially welcome guests to experience Mr. C Coconut Grove and Bellini in the heart of one of Miami’s most culturally-rich neighborhoods,” said Ignazio Cipriani, Founder/President of Mr. C Hotels. “Our partners, staff, and management are proud to contribute to the revitalization of the Coconut Grove community.”

Accommodations at the well-appointed hotel include 100 guestrooms and suites with unmatched views of Biscayne Bay and the Coconut Grove skyline from the furnished room terraces. From its interior, the hotel draws inspiration from Italy’s iconic coastal style and hints at the aesthetic elements of a classic yacht. Interior design includes high gloss timber paneling, leather-upholstered blue and caramel headboards, nautical style dressers, playful and comfortable sofas and armchairs in a range of soft and airy blue and white fabrics throughout the space. Acclaimed architecture and design firm, Arquitectonica, in conjunction with the Martin Brudnizki Design Studio, combined the stylish European glamour and nautical aesthetic Mr. C Hotels are best known for with the tropical surroundings of South Florida.

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New team member at The Pod Hotels

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The Pod Hotels is striving to address the rapidly-increasing demand for affordable lifestyle hotels targeted at progressive-minded and budget-conscious travelers who are creative and ambitious and who maintain high expectations when it comes to authentic experiences, smart design and intuitive technology.

As part of this progress, BD Hotels today announced the appointment of Rani Gharbie as the Head of Acquisitions & Development for The Pod Hotels, BD Hotel’s highly profitable micro-hotel concept to replicate this successful business model in even more key markets including Miami, San Francisco, Chicago, Austin, Boston, Nashville, Seattle, Montreal, Toronto, and Mexico City, amongst others.

Gharbie formerly oversaw development and acquisitions for North America at Virgin Hotels where he actively contributed to grow the brand’s footprint in key markets.

As Head of Acquisitions & Development working closely with BD Hotels owners Richard Born and Ira Drukier, Gharbie will be responsible for identifying potential investment opportunities and bringing together strategic partners and investors to fund future projects in numerous markets. He will leverage BD Hotels’ expertise in hotel development, investment and operations to expand The Pod Hotels brand across the country and eventually globally.

“Rani joins us at a pivotal time as we scale The Pod Hotels portfolio exponentially in North America” said Richard Born, Owner of BD Hotels. “He will undoubtedly be a tremendous asset as he brings over 20 years of experience in hotel acquisitions, development and operation.”

“I’m looking forward to expanding the profitable model Richard and Ira created to key markets nationwide,” said Gharbie. “I see great growth potential for the brand as there is an increased desire from today’s travelers to stay at smart, innovative brands like The Pod Hotels.”

Prior to joining Virgin Hotels, Gharbie was the Managing Director and Founder at Cedar Funds, a New York City based development and investment firm with a focus on progressive hotel and real estate assets, as well as regional Director of Development with InterContinental Hotels Group (IHG). In addition, Gharbie is an Adjunct Professor at Columbia’s Masters in Real Estate Development program, where he teaches the spring course Private Equity Development, Hotel Focus. He holds a Masters Degree from the program, an MBA from the HEC Business School in Montreal, a Bachelor degree in Hotel Management from the Glion Hotel School in Switzerland, and a Certificate in Hotel Real Estate Investments and Asset Management from Cornell University in New York.

The Pod Hotels currently has five properties in the portfolio, three of which opened over the past two years (the brand’s flagship Pod Times Square opened in January 2018; Pod DC and Pod Brooklyn opened in 2017), with the brand recently announcing two more hotels in the direct pipeline (Pod Philly opening in fall 2019 and Pod LA slated for 2020). With its functional guestrooms, vibrant communal space and flexible design, The Pod Hotels presents superior investment returns when compared to legacy hotel brands of similar positioning.

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National child safety advocate calls for ban on Airbnb hidden cameras

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National child safety advocacy group, Stop Child Predators, called on state and local government leaders in the U.S. today to ban hidden cameras in Airbnbs and other short-term rentals, and enact regulations and criminal penalties for violators. The group says enough is enough after a string of recent news stories regarding hidden cameras found in Airbnbs, including a story last week of a mother and young daughter potentially being filmed undressing.

“Week after week Airbnb finds themselves the subject of yet another hidden camera nightmare. These horrific accounts from Airbnb guests demonstrate how unsettling it is for guests that find themselves being filmed without their knowledge or consent – a scenario especially frightening for those traveling with children,” said Stacie Rumenap, President of Stop Child Predators. “Airbnb is allowing families to become sitting ducks for potentially predatory hosts who exploit guests by filming them and their children for personal viewing, or even wider audiences on the web.”

Rumenap points to a series of recent news stories involving hidden cameras discovered in Airbnbs and says the occurrence of incidents is on the rise.

• “Airbnb Has A Hidden-Camera Problem” (The Atlantic, 3/26/19)
• “They Were Settling Into Their Airbnb. Then They Found A Hidden Camera” (The Washington Post, 4/6/2019)
• “California Couple Finds Hidden Camera Above Bed At Airbnb Rental” (ABC News Channel 7, 3/29/19)
• “Man Discovers Hidden Cameras Inside Of Miami Airbnb” (WTNH News, 1/21/19)
• “At An Airbnb? You Might Be On Camera, Whether You Like It Or Not” (NBC News, 3/7/19)

“Airbnb already poses a problem for parents by allowing strangers, and even potential sex-offenders, into short-term rentals in residential family neighborhoods. With a revolving door of strangers coming and going from short-term rental properties, tools like sex offender lists are becoming obsolete as there is no safeguard in place to stop a child predator from renting an Airbnb property next door. Now, parents need to consider the added stress of worrying that their children may be filmed and exploited while staying inside an Airbnb on vacation,” stated Rumenap.

Stop Child Predators urges government leaders, especially in states and localities with major tourism destinations, to step in and protect traveling families whose privacy and safety should be safeguarded while vacationing in their jurisdiction.”

“Airbnb’s inability to manage the users, and abusers, of their platform is unacceptable. It’s time for government leaders to step in to protect our children,” stated Rumenap.

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Antigua and Barbuda strengthens its partner relations for win-win solutions for the upcoming cruise season 2019/2020

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Antigua & Barbuda’s Tourism Delegation led by the Hon. H. Charles Fernandez held a series of meetings with the country’s critical cruise line Partners  at Seatrade Cruise Global, the cruise industry’s largest annual conference being held at the newly rebuilt Miami Beach Convention Center.

The annual Seatrade Cruise Global Conference presented Antigua and Barbuda with a not to be missed opportunity to showcase its products and services to the cruise industry buyers and decision makers. It provided unique networking opportunities with industry leaders from all facets of the industry, and exposed its tourism executives to the conference’s educational industry programs, which allows participants to stay ahead of the curve.

The Country’s vibrant destination booth was a hub of activity as Antigua and Barbuda tourism officials conducted a series of one-on-one meetings, and media interviews.

In its communication to the major cruise lines the destination provided updates to its industry partners on its recently announced partnership with Global Port Holdings (GPH) and the Government’s strategic plans to expand the St. John’s Port facilities, to position the destination to take advantage of the growing industry trend towards larger cruise ships.

GPH also used the opportunity to announce its partnership with its two new Caribbean destinations Antigua and Barbuda and the Bahamas at a gala reception attended by over 600 cruise industry stakeholders.

In meeting after meeting Cruise-line executives reconfirmed their support for the initiative taken by Antigua & Barbuda to improve its infrastructure to offer the best possible service to cruise passengers. This more than anything else will ensure it remains well positioned as a premier cruise destination of choice within the Caribbean on many of the cruise line itineraries.

A major increase for the destination comes from a Key European cruise line partner TUI Cruises whose new ship the Mein Schiff 2, will increase calls to the destination after an absence of three years. Mein Schiff 2 will visit the destination on its inaugural call on November 6th with a total of 13 calls for season 2019/20 bringing over 37,000 passengers.

Another key Partner Norwegian Cruise Lines will return with the Norwegian “Epic” which was a diversion that has now become permanent, along with the Norwegian “Bliss” in the breakaway plus class. This ship will make its inaugural call on December 9th with over 4,000 passengers.

Royal Caribbean Cruise Lines (RCCL) one of the Country’s key partners confirmed that larger ships will be serving the destination this upcoming season and we will see an increase to approximately 250,000 passengers this year from its various lines. Antigua and Barbuda continues to record strong customer satisfaction scores of 8.8 out of a maximum of 10 with RCCL guests.

MSC cruise lines the world’s fastest growing cruise line, indicated Antigua is and will continue to be a key port of call as the company has 10 new ships on order and will be increasing its fleet to 29 ships with the delivery of one new ship per year up to 2027.

In a joint meeting with representatives for all the Carnival Corporation Cruise Lines the commitment was given at the highest level by all the attendee member lines to continue to work together with Antigua and Barbuda to our mutual benefit.

The Country’s presence at Seatrade also facilitates local stakeholder partners to also meet cruise line executives to increase their tours and excursion business. Local partners included Wadadli Cats, South American Ventures Ltd, The Rendezvous Company and Tropical Adventures.

Minister of Tourism the Hon. Charles Fernandez in all meetings thanked our cruise line partners for their support over the years and reconfirmed our commitment to work with all partners for win-win outcomes as the country continues on its development path to be a premier port of call for all cruise lines visiting the Caribbean.  “The Industry leaders have  reported that 2018 was the best year for profitability and have forecasted that, with a record orderbook for 70 new ships over the next three years and a record 25 million set to cruise in 2019, the Caribbean continues to be the world’s number one cruising destination. The renewed focus on improving our infrastructure by the Government has now positioned the destination to increase its share of this business,” said Minister Fernandez.

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