Hawaii Hotels Statewide Led U.S. Markets in RevPAR ($229) and ADR ($280) in First Half of 2018

For Immediate Release: July 26, 2018
HTA Release (18-40)

2018-07-26 HTA June 2018 Hawaii Hotels Performance.pdf

HONOLULU – Hawaii hotels statewide recorded the highest revenue per available room (RevPAR) and average daily rate (ADR) of the top U.S. markets in the first six months of 2018, according to the Hawaii Hotel Performance Report released today by the Hawaii Tourism Authority (HTA).

Year-to-date, RevPAR in the Hawaiian Islands grew to $229 (+7.9%), ADR rose to $280 (+6.0%) and occupancy increased to 81.7 percent (+1.4 percentage points) in the first half of 2018 compared to the same period last year (Figure 1).

HTA’s Tourism Research Division issued the report’s findings utilizing data compiled by STR, Inc., which conducts the largest and most comprehensive survey of hotel properties in the Hawaiian Islands.

All classes of Hawaii’s hotel properties statewide reported RevPAR growth in the first half of 2018, with Midscale & Economy Class hotels ($139, +13.9%) and Upscale Class hotels ($163, +10.5%) both reporting double-digit increases compared to a year ago. Luxury Class hotels also performed well, earning RevPAR of $432 (+9.9%), which was driven by increases in both ADR to $562 (+8.0%) and occupancy of 76.9 percent (+1.3 percentage points).

The strong, across-the-board performance raised the Hawaiian Islands’ RevPAR to $229 and earned a number one nationwide ranking when compared to other top U.S. markets for the first half of 2018. New York City followed at $205, with San Francisco/San Mateo at $192 (Figure 2). Hawaii also led the top U.S. markets in ADR at $280, again followed by New York City at $241 and San Francisco/San Mateo at $236 (Figure 3). Hawaii ranked second nationally for occupancy at 81.7 percent, trailing New York City at 85.2 percent and being on par with Orlando, FL[1] (Figure 4).

“For Hawaii to earn the number one ranking in the U.S. in both RevPAR and ADR as the market is rising nationally is a significant achievement for the state,” said Jennifer Chun, HTA tourism research director. “Most U.S. markets reported RevPAR growth in the first half of 2018. Very few markets were down compared to a year ago.”

Hotels in each of Hawaii’s four island counties enjoyed a solid first six months of 2018. Maui County hotels led the state overall in RevPAR at $313 (+11.5%), driven by an increase in ADR to $398 (+10.9%). On Maui, the luxury resort region of Wailea generated outstanding results, leading the state in RevPAR at $537 (+16.5%), ADR at $607 (+13.4%) and occupancy of 88.4% (+2.4 percentage points) in the first half of 2018. In addition, hotels in the Lahaina-Kaanapali-Kapalua resort area reported growth in RevPAR to $259 (+8.8%), which was driven by an increase in ADR to $332 (9.1%).

Kauai’s hotels led the state in growth of RevPAR ($233, +15.2%), boosted by increases in ADR to $295 (+12.0%) and occupancy of 79.2 percent (+2.2 percentage points).

Oahu hotel properties generated the state’s highest occupancy at 84.4 percent (+1.6 percentage points) in the first half of 2018. Coupled with a modest increase in ADR to $233 (+1.9%), Oahu hotels earned RevPAR of $197 (+3.8%). Waikiki hotels grew RevPAR to $195 (+3.8%) supported by increases in both ADR to $229 (+1.9%) and occupancy to 85.1 percent (+1.6 percentage points).

[1] State of Hawaii occupancy was 0.01 percentage points higher than Orlando, FL for year-to-date June 2018.