Hawaii hotels led U.S. markets with the nation’s highest average-daily-room rate (ADR) and revenue-per-available room (RevPAR) in the first quarter of 2018, according to a hotel report released by the Hawaii Tourism Authority today.
First quarter occupancy at Hawaii hotels also was robust, earning the third best ranking in the nation. Only Miami/Hialeah and Orlando posted better occupancy rates, according to the report, compiled using data from Tennessee-based STR Inc.
HTA reported Hawaii’s first quarter ADR grew nearly 7 percent to almost $293 while occupancy grew nearly 2 percentage points to nearly 83 percent. RevPAR, which is the measure of what each hotel room earns regardless of its occupancy status, rose nearly 9 percent to $243.
All four Hawaii islands also made the top 15 list of competitive sun and sea destinations around the globe for ADR, RevPAR and occupancy.
Jennifer Chun, HTA director of research said the first quarter results got an assist from the impact of the new trans-Pacific air service that was added to Hawaii last year.
“The strength of Hawaii’s hotel performance in all island counties was supported by the expansion of air seat capacity to accommodate travel demand,” Chun said in a statement.
Scheduled air seats are expected to increase 9 percent to nearly 13.2 million this year. More than 9.7 million of these seats will serve the North American market.
Still, Hawaii’s international visitors also have gained additional access via two new carriers: AirAsiaX and Scoot. Japan Airlines also reinstated a Tokyo- Kona route adding more international seats.
For the month of March, statewide occupancy rose nearly 3 percentage points year-over-year to nearly 82 percent. March’s statewide ADR grew to nearly $289, a rise of nearly 8 percent from March 2017. RevPAR in March climbed nearly 12 percent from the year-ago March to nearly $236.
Oahu, Hawaii island and Kauai all experienced year-over-year monthly gains in all March categories. While Maui’s March occupancy was flat year over year, but the island saw rises in ADR and RevPAR. March also brought occupancy, ADR and RevPAR gains in all categories of accommodations, ranging from midscale and economy class to the luxury class.
“Hotel properties in all four island counties performed very well in March, which helps to strengthen the base of tourism’s benefits across the state,” said Chun. “The results for Kauai and the island of Hawaii are particularly notable. RevPAR was exceptional and ADR was strong in March, but the occupancy rate for both islands far exceeded what was reported the first two months. The impact of new air service being added is reflected in the significant increase in occupancy.”