April business showered Hawaii’s hotel industry with monthly records for revenue, average daily rate and revenue per available room.
The industry earned $424 million during the month in total statewide revenue, according to a report scheduled for release today by Hospitality Advisors LLC. Statewide occupancy rose 2.1 percentage points to 76.8 percent from the prior year.
Increased room demand pushed up the statewide average daily rate (ADR) 1.6 percent to $240.19. Likewise, revenue per available room (RevPAR) climbed 4.5 percent to $184.47. That’s important because many hotel experts consider RevPAR the industry’s best performance indicator since it reflects the price attained by each hotel room regardless of whether it’s occupied.
“When we come in higher than expected like we did this April, we are in great shape. It’s a shoulder month, so there’s more room for growth,” said Barry Wallace, executive vice president of hospitality services for Outrigger Enterprises Group.
Jerry Gibson, area vice president of Hilton Hawaii, said the spring market also came in better than expected for Hilton properties across the isles.
“We had a good smattering of … groups from Japan, and they were very good spenders in and out of the hotel,” he said. “It also helped that April was a group month, and we had a good transient base. Spending picked up across the board.”
April occupancy on Oahu rose 2.4 percentage points from April 2015 to a very full 81.7 percent. The average daily rate on Oahu rose
2.5 percent to $206.80, and RevPAR grew 5.6 percent year over year to $168.96.
Performance on the neighbor islands was mixed, although some April records were set.
“I was happy all the way around,” Gibson said. “Maui and the Big Island did well for us.”
April room rates on Maui fell a scant 0.5 percent year over year to $317.63. However, a 3.7-percentage-point increase in occupancy to 77.2 percent helped offset the rate decline and helped RevPAR rise 4.5 percent to $245.21, an April record.
The Westin Maui Resort
&Spa saw “exceptional growth” in April occupancy, said Tony Bruno, the resort’s general manager.
“In fact, it has been the best April we have seen in many, many years,” Bruno said. “The momentum continues as we look forward to seeing extremely strong occupancy and ADR growth in summer as well.”
While Kauai’s April average daily rate grew 2.5 percent from the prior April to $245.03, occupancy on Kauai fell 2.2 percentage points to 67 percent. But the rate gain was not high enough to overcome the occupancy loss, and RevPAR dipped 0.8 percent to $164.17.
April occupancy on Hawaii island rose a lackluster 0.7 percentage points to
63.6 percent. However, the island’s April average daily rate rose to $239.80, a
2.6 percent increase from April 2015. That gain helped push RevPAR to an April high of $152.51, up 3.7 percent from the prior year.
Year to date through April, Hawaii’s hotel industry achieved a 79.9 percent occupancy rate, up 1.2 percentage points from the same period in 2015. The year-to-date average daily rate rose 2.1 percent to $253.77, and the RevPAR increased 3.7 percent to $202.76.
Wallace said the arrival of RIMPAC, the Rim of the Pacific Exercise, an international maritime warfare exercise, in June and July will create pickup as spring turns to summer.
The International Union for Conservation of Nature (IUCN) World Conservation Congress, which will be held Sept. 1-10 in Hawaii, also should add to the fall traffic, he said.
But Gibson said it’s still early to tell how the third and fourth quarters will end.
“We’d be happy if we finished the year with the same occupancy as last year, but hopefully the rate does a little better,” he said.