Oahu hotels No. 1 in report
By Robbie Dingeman
Advertiser Staff Writer
HONOLULU — While Hawai'i's hotels have been particularly hard hit by the extended tourism downturn, O'ahu ranked first in hotel occupancy among the top 10 competitive international island destinations with an average occupancy rate of 70.9 percent for the first six months of the year, according to a report from a lodging industry consulting firm.
"While we ranked well against our primary global competitors, it is notable that most of our competitors are also suffering a similar magnitude in hotel industry revenue losses that Hawai'i has had to endure over the past 15 months," said Joseph Toy, president and chief executive officer of Hospitality Advisors LLC.
"What this demonstrates is that despite the tremendous market losses in our visitor industry, Hawai'i has been able to maintain its positioning against both its international and domestic competitors during this severe global economic downturn," Toy said.
Puerto Rico came in second with a 68.3 percent occupancy rate and the Cayman Islands snagged third place at 66.9 percent. Maui and Kaua'i ranked fifth and ninth, with occupancy rates of 64.0 percent and 62.1 percent, respectively.
The Maldives reported the highest average daily room rate among competitive island destinations for the first half of 2009 at $802.48. Maui ranked fifth at $242.36.
Kaua'i and the Big Island also made the top 10 by placing seventh and eighth with average daily rates of $189.46 and $187.07, respectively.
The Maldives also led the top 10 international island destinations in revenue per available room — a key gauge of hotel profitability — at $498.16. Maui was fourth in "revpar" ($155.01), Kaua'i was seventh ($117.60), O'ahu was ninth ($106.82), and the Big Island was 10th ($104.04).
When compared to selected major competitive destinations, Hawai'i ranked fifth at the half-year mark through June 2009 at 66 percent, with South Korea leading the ranking with 74.1 percent occupancy.
Hawai'i ranked first in average daily rate and revpar for the first half of 2009 with $181.13 and $119.55, respectively.
The new report is based on global hotel industry statistics compiled by Smith Travel Research, Hospitality Advisors' strategic partner for the Hawai'i market.
The report focuses on market comparisons with major international competitive countries and regions, as well as selected competitive island destinations.
This report will be published on a quarterly basis, and is intended to supplement the analysts' monthly Hawaii Hotel Flash Report, which primarily focuses on the U.S. market overall and selected competitive leisure U.S. hotel markets.