By Dave Segal

Posted January 26, 2018
January 26, 2018


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 Thursday 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.

On the neighbor islands, Hawaii island posted a strong performance with RevPAR up 11.7 percent to $185.35, occupancy ahead 5.7 percentage points to 74.4 percent and the average daily rate up 3.1 percent to $249.26.

“The island of Hawaii stands out for the way it is bouncing back with healthy increases in RevPAR and occupancy,” Chun said. “The increased air seat capacity introduced in 2017 translated into success for the hotel properties.”

On Maui, RevPAR rose 8.9 percent to $272.15, the average daily rate increased 7.1 percent to $353.04 — the highest on any island — and occupancy rose 1.2 percentage points to 77.1 percent.

For Kauai, RevPAR rose 8.6 percent to $199.83, the average daily rate increased 4.3 percent to $263.97 and occupancy was up 3 percentage points to 75.7 percent.

Statewide, all classes of hotel properties performed better than a year ago.

Luxury-class properties posted gains in RevPAR (up 6.2 percent to $394.29), average daily rate (up 4.5 percent to $525.13) and occupancy (up 1.2 percentage points to 75.1 percent).

Midscale and economy-class hotels reported the highest growth in RevPAR (up 6.6 percent to $118.86), followed by average daily rate (up 3.4 percent to $152.68) and occupancy (up 2.4 percentage points to 77.9 percent).

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.