A higher average hotel rate drove up hotel performance in October offsetting flat statewide occupancy, according to Hawaii hotel performance report distributed today by the Hawaii Tourism Authority.
The average daily rate (ADR) for Hawaii hotels in October climbed nearly 4 percent from the prior year to $240, according to HTA’s Tourism Research Division, which compiled the report STR Inc. data, which was gleaned in October from surveying more than 166 properties, representing 48,989 rooms, or nearly 91 percent of all Hawaii lodging with 20 rooms or more.
October occupancy only rose 0.1 of a percentage point to 78.6 percent. However, the ADR gain helped push revenue per available room (RevPAR) up nearly 4 percent from the same period in 2016 to $189. RevPAR, which is the price a hotelier gets per room regardless of its rental status, is considered by many in the industry as the best measure of performance.
“October was a solid month in what has been a good year overall for hotel properties statewide that reflects the tourism industry’s ability to attract travelers at different price points, particularly visitors seeking high-end accommodations,” said Jennifer Chun, who starts serving as HTA director of tourism research on Friday. “This is especially true for neighbor island hotel properties, which are largely realizing excellent year-over-year growth in revenues generated on a per room basis.”
Year to date through October, RevPAR climbed nearly 6 percent to $210, ADR rose just over 4 percent to $261 and occupancy grew a scant 0.9 percentage point to 80.3 percent.