Hawaii hotels report occupancy, revenue drop

Hotels across Hawaii reported substantially higher revenue per available room, average daily rate and occupancy in September compared to the same month in 2020 when the state’s quarantine order for travelers due to the COVID-19 pandemic resulted in dramatic declines for the hotel industry. 

When compared to September 2019, statewide ADR was higher in 2021 but RevPAR was lower due to less occupancy.

According to the Hawaii Hotel Performance Report published by the Hawaii Tourism Authority, statewide RevPAR in September 2021 was $168 (up 442.6 percent), with ADR at $304 (up 102.7 percent) and occupancy of 55.2 percent (up 34.6 percentage points) compared to September 2020. Compared with Sept. 2019, RevPAR was 13.5 percent lower, driven by lower occupancy (down 23.8 percentage points) which could not be offset by increased ADR (up 23.7 percent).

“Hawaii’s hotel industry saw a decrease in September RevPAR and occupancy statewide compared to September 2019, in part due to the effects of the Delta variant that stymied travel demand,” said John De Fries, HTA president and CEO. “This reminds us that the pandemic is not over and we must remain vigilant to keep our communities safe and economic recovery on track.”

In September, passengers arriving from out-of-state could bypass the state’s mandatory 10-day self-quarantine if they were fully vaccinated in the United States or with a valid negative COVID-19 NAAT test result prior to their departure through the Safe Travels program. On Aug. 23, Hawaii Governor David Ige urged travelers to curtail nonessential travel until the end of October due to the Delta variant resulting in the state’s health care system being overburdened.

With reduced inbound travel starting in late August, the state reported a significant month-over-month decrease across all metrics. August's statewide RevPAR was $261, with ADR at $355 and occupancy at 73.4 percent.

Hawaii hotel room revenues statewide rose to $270 million (up 908.7 percent vs. 2020, down 13.2 percent vs. 2019) in September. Room demand was 887,100 room nights (up 397.6 percent vs. 2020, down 29.8 percent vs. 2019) and room supply was 1.6 million room nights (up 85.9 percent vs. 2020, up 0.4 percent vs. 2019). Many properties closed or reduced operations starting in April 2020 due to the COVID-19 pandemic. Due to these supply reductions, comparative data for certain markets and prices classes were not available for 2020; the HTA instead compared metrics to 2019. 

Segment Performance

Luxury properties earned RevPAR of $308 (up 1,364.2 percent vs. 2020, down 4.7 percent vs. 2019), with ADR at $664 (up 149.9 percent vs. 2020, up 45.6 percent vs. 2019) and occupancy of 46.4 percent (up 38.5 percentage points vs. 2020, down 24.4 percentage points vs. 2019). 

Midscale and economy properties earned RevPAR of $159 (up 273.1 percent vs. 2020, up 23.7 percent vs. 2019) with ADR at $281 (up 147.3 percent vs. 2020, up 77 percent vs. 2019) and occupancy of 56.4 percent (up 19 percentage points vs. 2020, down 24.3 percentage points vs. 2019). 

Island by Island

Maui County hotels led the counties in September and achieved RevPAR that surpassed the same month in 2019. RevPAR was $289 (up 958.5 percent vs. 2020, up 25.2 percent vs. 2019), with ADR at $488 (up 233.1 percent vs. 2020, up 54.4 percent vs. 2019) and occupancy of 59.2 percent (up 40.6 percentage points vs. 2020, down 13.8 percentage points vs. 2019). Maui’s luxury resort region of Wailea had RevPAR of $366 (down 3.5 percent vs. 2019), with ADR at $682 (up 48.1 percent vs. 2019) and occupancy of 53.7 percent (down 28.7 percentage points vs. 2019). The Lahaina/Kaanapali/Kapalua region had RevPAR of $258 (up 1,828.6 percent vs. 2020, up 30 percent vs. 2019), ADR at $416 (up 208.1 percent vs. 2020, up 50.6 percent vs. 2019) and occupancy of 62 percent (up 52.1 percentage points vs. 2020, down 9.8 percentage points vs. 2019).

Kauai hotels earned RevPAR of $209 (up 812.3 percent vs. 2020, up 26.2 percent vs. 2019), with ADR at $316 (up 107.9 percent vs. 2020, up 32.8 percent vs. 2019) and occupancy of 66.1 percent (up 51.1 percentage points vs. 2020, down 3.4 percentage points vs. 2019). 

Hotels on the island of Hawaii reported RevPAR at $172 (up 530 percent vs. 2020, up 12.8 percent vs. 2019), with ADR at $307 (up 137.6 percent vs. 2020, up 38.7 percent vs. 2019), and occupancy of 56 percent (up 34.9 percentage points vs. 2020, down 12.9 percentage points vs. 2019). Kohala Coast hotels earned RevPAR of $246 (up 19.5 percent vs. 2019), with ADR at $476 (up 54.1 percent vs. 2019), and occupancy of 51.6 percent (down 15 percentage points vs. 2019).

Oahu hotels reported RevPAR of $110 (up 214.6 percent vs. 2020, down 42.8 percent vs. 2019) in September, ADR at $212 (up 36.3 percent vs. 2020, down 6.2 percent vs. 2019) and occupancy of 51.8 percent (up 29.4 percentage points vs. 2020, down 33.1 percentage points vs. 2019). Waikiki hotels earned $104 (up 243.4 percent vs. 2020, down 46 percent vs. 2019) in RevPAR with ADR at $199 (up 30.6 percent vs. 2020, down 11.1 percent vs. 2019) and occupancy of 52 percent (up 32.2 percentage points vs. 2020, down 33.7 percentage points vs. 2019).

First Nine Months of 2021

Through the first nine months of the year, Hawaii hotel performance statewide continued to be impacted by the COVID-19 pandemic. Hawaii hotels earned $177 in RevPAR (up 49 percent vs. 2020, down 22.3 percent vs. 2019), with ADR at $317 (up 16.5 percent vs. 2020, up 13 percent vs. 2019) and occupancy of 55.9 percent (up 12.2 percentage points vs. 2020, down 25.3 percentage points vs. 2019).

Total statewide hotel revenues for the first nine months of 2021 were $2.5 billion (up 110.8 percent vs. 2020, down 25.5 percent vs. 2019). Room supply was 14.1 million room nights (up 41.5 percent vs. 2020, down 4.1 percent vs. 2019), and room demand was 7.9 million room nights (up 81.1 percent vs. 2020, down 34 percent vs. 2019).

Comparison to Top U.S. Markets

In comparison to the top U.S. markets during the first nine months of 2021, the Hawaiian Islands earned the highest RevPAR at $177 (up 49 percent). Miami was second at $143 (up 52.3 percent), followed by New York City at $101 (up 29.8 percent). 

The Hawaiian Islands also led the U.S. markets in ADR at $317 (up 16.5 percent), followed by Miami, Florida at $216 (up 8.1 percent) and New York, New York at $182 (up 16.6 percent). 

With the U.S. mainland accessible for road trips and short-haul inter-continental flights, the Hawaiian Islands’ occupancy continued to be lower than many destinations in STR’s top 25 markets; landing at the 11th spot. Tampa, Fla., topped the country in occupancy at 68.9 percent (up 17.4 percentage points), followed by Miami at 66.1 percent (up 19.2 percentage points), and Norfolk/Virginia Beach, Va., at 63.6 percent (up 13.7 percentage points). 

Comparison to International Markets

Hotels in the Maldives ranked highest in RevPAR for international “sun and sea” destinations at $337 (up 46.2 percent), followed by French Polynesia ($315, up 29.9 percent) and Maui County ($303, up 81.9 percent). The island of Hawaii, Kauai, and Oahu ranked fourth, sixth, and ninth, respectively.

French Polynesia led in ADR at $718 (up 30.1 percent), followed by the Maldives ($656, down 11.7 percent) and Maui County ($517, up 26.1 percent). The island of Hawaii, Kauai, and Oahu ranked fifth, sixth, and ninth, respectively. 

Puerto Rico led in occupancy for “sun and sea” destinations at 63.7 percent (up 30.1 percentage points), followed by Maui County (58.7 percent, up 18 percentage points) and Hawaii Island (58.4 percent, up 12.1 percentage points). Kauai and Oahu ranked fifth and sixth, respectively.

The report’s findings utilized data compiled by STR. For September, the survey included 144 properties representing 46,094 rooms, or 85.4 percent of all lodging properties and 86 percent of operating lodging properties with 20 rooms or more in the Hawaiian Islands, including those offering full service, limited service, and condominium hotels. Vacation rental and timeshare properties were not included in this survey.