Hawaii Hotel Revenues Soar, Timeshare Purchases Down

Hotels across Hawaii have commanded such high rates this summer that their room revenues are far above 2005 levels despite selling fewer room nights.

July occupancy statewide was 86.6 percent, down from 88.9 percent in the same month last year. But rates were up 12.8 percent, producing record room revenue growth.

Hotels sold 1,577,000 room nights in July, Hospitality Advisors President Joe Toy said Wednesday, down 5.4 percent from July 2005.

"The trend of declining room sales parallels the decreasing use of traditional hotels in favor of alternative accommodations, such as condominiums and timeshares," Toy said.

The Hawaii Department of Business, Economic Development & Tourism reported Tuesday that July visitor arrivals fell 1.9 percent from year-before levels.

"We are likely past the peak of the industry expansion that began in mid-2003," Toy said, but added, "we should continue to expect a record year in industry revenues for 2006."

Details from the July report:

Waikiki was 92.1 percent full in July, compared to 93.7 percent in July 2005, but room rates were up 13 percent to an average $163 a night, pushing revpar -- revenue per available room -- up 11.1 percent to $150. Overall Oahu revpar rose 10.7 percent to $151.
Maui was 85.1 percent full, the same as last year, but rates rose 14.1 percent to a countywide average of $269 a night, and Wailea room rates rose to a remarkable $429 a night. West Maui rates were $261 on average. Maui revpar was $229, up $29 from last year, but it was $349 in Wailea, also up $29.

Kauai was 81.1 percent full, compared to 75.6 percent a year earlier, while rates rose 8.8 percent to $203 a night. Revpar: $165, up $3 from last year.
The Big Island was 77.4 percent full, down from 81.7 percent a year ago, but room rates rose 9.3 percent to $194 a night. Revpar: $150, up $5.
For the first seven months of the year, statewide occupancy has been 81.8 percent, close to the year-before level of 82.2 percent, with average rates up $21 and revpar up $17 from last year.