HTA News Release: Hawaii Hotel RevPAR Down 13.5% in September 2021 Compared to September 2019 Due to Lower Occupancy; Hawaii Still Leading the Nation in RevPAR and ADR

Posted on Oct 20, 2021 in Latest News, Newsroom

HONOLULU – Hawaii hotels statewide reported substantially higher revenue per available room (RevPAR), average daily rate (ADR), and occupancy in September 2021 compared to September 2020 when the State’s quarantine order for travelers due to the COVID-19 pandemic resulted in dramatic declines for the hotel industry. When compared to September 2019, statewide ADR was higher in September 2021 but RevPAR was lower due to less occupancy.

According to the Hawaii Hotel Performance Report published by the Hawaii Tourism Authority (HTA), statewide RevPAR in September 2021 was $168 (+442.6%), with ADR at $304 (+102.7%) and occupancy of 55.2 percent (+34.6 percentage points) compared to September 2020 (Figure 1). Compared with September 2019, RevPAR was 13.5 percent lower, driven by lower occupancy (-23.8 percentage points) which could not be offset by increased ADR (+23.7%) (Figure 5).

“Hawaii’s hotel industry saw a decrease in September RevPAR and occupancy statewide compared to September 2019, in part due to the effects of the Delta variant that stymied travel demand,” said John De Fries, HTA president and CEO. “This reminds us that the pandemic is not over and we must remain vigilant to keep our communities safe and economic recovery on track.”

The report’s findings utilized data compiled by STR, Inc., which conducts the largest and most comprehensive survey of hotel properties in the Hawaiian Islands. For September, the survey included 144 properties representing 46,094 rooms, or 85.4 percent of all lodging properties1 and 86.0 percent of operating lodging properties with 20 rooms or more in the Hawaiian Islands, including those offering full service, limited service, and condominium hotels. Vacation rental and timeshare properties were not included in this survey.

In September 2021, passengers arriving from out-of-state could bypass the State’s mandatory 10-day self-quarantine if they were fully vaccinated in the United States or with a valid negative

COVID-19 NAAT test result from a Trusted Testing Partner prior to their departure through the Safe Travels program. On August 23, 2021, Hawaii Governor David Ige urged travelers to curtail non-essential travel until the end of October 2021 due to the Delta variant resulting in the state’s health care system being overburdened.

Hawaii hotel room revenues statewide rose to $270.0 million (+908.7% vs. 2020, -13.2% vs. 2019) in September. Room demand was 887,100 room nights (+397.6% vs. 2020, -29.8% vs. 2019) and room supply was 1.6 million room nights (+85.9% vs. 2020, +0.4% vs. 2019) (Figure 2). Many properties closed or reduced operations starting in April 2020 due to the COVID-19 pandemic. Due to these supply reductions, comparative data for certain markets and prices classes were not available for 2020; and comparisons to 2019 have been added.

Luxury Class properties earned RevPAR of $308 (+1,364.2% vs. 2020, -4.7% vs. 2019), with ADR at $664 (+149.9% vs. 2020, +45.6% vs. 2019) and occupancy of 46.4 percent (+38.5 percentage points vs. 2020, -24.4 percentage points vs. 2019). Midscale & Economy Class properties earned RevPAR of $159 (+273.1% vs. 2020, +23.7% vs. 2019) with ADR at $281 (+147.3% vs. 2020, +77.0% vs. 2019) and occupancy of 56.4 percent (+19.0 percentage points vs. 2020, -24.3 percentage points vs. 2019).

Maui County hotels led the counties in September and achieved RevPAR that surpassed September 2019. RevPAR was $289 (+958.5% vs. 2020, +25.2% vs. 2019), with ADR at $488 (+233.1% vs. 2020, +54.4% vs. 2019) and occupancy of 59.2 percent (+40.6 percentage points vs. 2020, -13.8 percentage points vs. 2019). Maui’s luxury resort region of Wailea had RevPAR of $366 (-3.5% vs. 20192), with ADR at $682 (+48.1% vs. 20192) and occupancy of 53.7 percent (-28.7 percentage points vs. 20192). The Lahaina/Kaanapali/Kapalua region had RevPAR of $258 (+1,828.6% vs. 2020, +30.0% vs. 2019), ADR at $416 (+208.1% vs. 2020, +50.6% vs. 2019) and occupancy of 62.0 percent (+52.1 percentage points vs. 2020, -9.8 percentage points vs. 2019).

Kauai hotels earned RevPAR of $209 (+812.3% vs. 2020, +26.2% vs. 2019), with ADR at $316 (+107.9% vs. 2020, +32.8% vs. 2019) and occupancy of 66.1 percent (+51.1 percentage points vs. 2020, -3.4 percentage points vs. 2019).

Hotels on the island of Hawaii reported RevPAR at $172 (+530.0% vs. 2020, +12.8% vs. 2019), with ADR at $307 (+137.6% vs. 2020, +38.7% vs. 2019), and occupancy of 56.0 percent (+34.9 percentage points vs. 2020, -12.9 percentage points vs. 2019). Kohala Coast hotels earned RevPAR of $246 (+19.5% vs. 20192), with ADR at $476 (+54.1% vs. 20192), and occupancy of 51.6 percent (-15.0 percentage points vs. 20192).

Oahu hotels reported RevPAR of $110 (+214.6% vs. 2020, -42.8% vs. 2019) in September, ADR at $212 (+36.3% vs. 2020, -6.2% vs. 2019) and occupancy of 51.8 percent (+29.4 percentage points vs. 2020, -33.1 percentage points vs. 2019). Waikiki hotels earned $104 (+243.4% vs. 2020, -46.0% vs. 2019) in RevPAR with ADR at $199 (+30.6% vs. 2020, -11.1% vs. 2019) and occupancy of 52.0 percent (+32.2 percentage points vs. 2020, -33.7 percentge points vs. 2019).

First Nine Months of 2021

Through the first nine months of 2021, Hawaii hotel performance statewide continued to be impacted by the COVID-19 pandemic. Hawaii hotels earned $177 in RevPAR (+49.0% vs. 2020, -22.3% vs. 2019), with ADR at $317 (+16.5% vs. 2020, +13.0% vs. 2019) and occupancy of 55.9 percent (+12.2 percentage points vs. 2020, -25.3 percentage points vs. 2019).

Total statewide hotel revenues for the first nine months of 2021 were $2.5 billion (+110.8% vs. 2020, -25.5% vs. 2019). Room supply was 14.1 million room nights (+41.5% vs. 2020, -4.1% vs. 2019), and room demand was 7.9 million room nights (+81.1% vs. 2020, -34.0% vs. 2019).

Comparison to Top U.S. Markets

In comparison to the top U.S. markets during the first nine months of 2021, the Hawaiian Islands earned the highest RevPAR at $177 (+49.0%). Miami, Florida was second at $143 (+52.3%), followed by New York, New York at $101 (+29.8%) (Figure 19).

The Hawaiian Islands also led the U.S. markets in ADR at $317 (+16.5%), followed by Miami, Florida at $216 (+8.1%) and New York, New York at $182 (+16.6%) (Figure 20).

With the U.S. Mainland accessible for road trips and short-haul inter-continental flights, the Hawaiian Islands’ occupancy continued to be lower than many destinations in STR’s top 25 markets; landing at the 11th spot (Figure 21). Tampa, Florida topped the country in occupancy at 68.9 percent (+17.4 percentage points), followed by Miami, Florida at 66.1 percent (+19.2 percentage points), and Norfolk/Virginia Beach, Virginia at 63.6 percent (+13.7 percentage points).

Comparison to International Markets

Hotels in the Maldives ranked highest in RevPAR for international “sun and sea” destinations at $337 (+46.2%), followed by French Polynesia ($315, +29.9%) and Maui County ($303, +81.9%). The island of Hawaii, Kauai, and Oahu ranked fourth, sixth, and ninth, respectively (Figure 22).

French Polynesia led in ADR at $718 (+30.1%), followed by the Maldives ($656, -11.7%) and Maui County ($517, +26.1%). The island of Hawaii, Kauai, and Oahu ranked fifth, sixth, and ninth, respectively (Figure 23).

Puerto Rico led in occupancy for “sun and sea” destinations at 63.7 percent (+30.1 percentage points), followed by Maui County (58.7%, +18.0 percentage points) and Hawaii Island (58.4 percent, +12.1 percentage points). Kauai and Oahu ranked fifth and sixth, respectively (Figure 24).

Tables of hotel performance statistics, including data presented in the report are available for viewing online at: https://www.hawaiitourismauthority.org/research/infrastructure-research/

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[1] Based on 2019 census rooms.

[2] Comparative data for 2020 were not available.

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About the Hawaii Hotel Performance Report

The Hawaii Hotel Performance Report is produced using hotel survey data compiled by STR, Inc., the largest survey of its kind in Hawaii. The survey generally excludes properties with under 20 lodging units, such as small bed and breakfasts, youth hostels, single-family vacation rentals, cottages, individually rented vacation condominiums and sold timeshare units no longer available for hotel use. The data has been weighted both geographically and by class of property to compensate for any over and/or under representation of hotel survey participants by location and type.

For September, the survey included 144 properties1 representing 46,094 rooms, or 85.4 percent of all lodging properties and 86.0 percent of operating lodging properties with 20 rooms or more in the Hawaiian Islands, including full service, limited service, and condominium hotels. The September survey included 75 properties on Oahu representing 28,639 rooms (95.2% of operating properties); 39 properties in the County of Maui, representing 9,548 rooms (74.4% of operating properties); 15 properties on the island of Hawaii, representing 4,760 rooms (71.4% of operating properties); and 15 properties on Kauai, representing 3,147 rooms (78.8% of operating properties).

About the Hawaii Tourism Authority

The Hawaii Tourism Authority is the State of Hawaii agency responsible for strategically managing its support of the tourism industry. Established in 1998 to support Hawaii’s leading industry and largest employer, HTA continually strives to help ensure tourism’s sustainability and the benefits it brings to residents and communities statewide.