State hotels set revenue, daily rate records for 2017
  • Saturday, June 15, 2019
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Business Breaking | Top News

State hotels set revenue, daily rate records for 2017

Hawaii hotels received top dollar in 2017.

Hotels statewide averaged a record $212 in revenue per available room and an average daily rate of $264, according to data released today by the Hawaii Tourism Authority. Occupancy averaged 80.0 percent, an increase of 1 percentage point over 2016 but below the all-time high of 81.1 percent in 2005.

The impetus behind the record-breaking performance was an increase in visitor arrivals and spending. Both those categories are expected to show their sixth straight year of records when the HTA releases year-end numbers next week.

“Coming into 2017 the outlook was soft for the hotel industry, particularly in the third quarter, but the rates that hotels commanded, and the revenues generated, turned out to be far greater than anyone anticipated on a statewide level,” said Jennifer Chun, HTA director of tourism research.

Waikiki, which has the state’s largest concentration of rooms, did not enjoy the same level of success as the neighbor islands. RevPAR was flat at $192.95, the average daily rate was up just 1.2 percent to $228.55 and the occupancy rate, while the highest in the state at 84.4 percent, was down 1.1 percentage points from 85.5 percent in 2016.

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.

In December, statewide hotels enjoyed their highest RevPAR of any month during the year at $251.12, up 3.8 percent over the year-earlier period. The average daily rate rose 3.7 percent to $319.20. Occupancy, though, was virtually flat at 78.7 percent compared with 78.6 percent in December 2016.

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