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Data: State hotel rates have worst Feb. in 18 years

Maui occupancy numbers drop almost 10% compared with ’08

April 6, 2009
Maui News staff and The Associated Press

HONOLULU - Maui occupancy rates fell nearly 10 percentage points when comparing the 85.1 percent level of hotel occupancy in February 2008 with the 75.8 percent rate recorded for the same month last year.

The numbers were in a Hawai'i Hotel Flash Report released by Hospitality Advisers LLC, which reported that hotels statewide had their worst February occupancy rates in 18 years - since the fallout from the Persian Gulf War in February 1991. The low numbers are of particular concern because February traditionally is a busy season for Hawaii hotels.

The flash report also said the average daily room rate for Maui (the highest in the state) dropped from $287.54 in February 2008 to $249.07 in the same month this year - a loss of $38.47. And, revenue per available room on the Valley Isle went from $244.61 to $188.74 for the same time period.

Statewide, only three-quarters of Hawaii hotel rooms were occupied in February.

The average daily rate also plunged 12.4 percent, the sharpest decline since the survey began in 1987, from $213.62 to $187.21, according to Hospitality Advisors.

February's 74.7 percent occupancy rate was the lowest since falling to 69.7 in 1991 during the Persian Gulf War.

The report said the "deterioration" in both occupancy and room rates resulted in a 21.6 percent plunge to $139.94 in revenue per available room, a key gauge of a hotel profitability and performance.

Properties statewide posted the worst revenue per available room decline since November 2001, which followed the Sept. 11 terrorist attacks, when the indicator dropped 26.9 percent to $74.26.

''The market drops were significant, particularly in the month of February which is normally our busiest month of the year,'' said Joseph Toy, president and chief executive of Hospitality Advisors, a Honolulu-based consultant.

Toy said huge discounts in room rates in the market ''are unprecedented as hotels are trying to generate volume.''

''Still, Hawaii continues to be one of the strongest markets in the U.S. given that the recession has impaired all destinations globally,'' he said.

The tourism downturn is caused by the continuing global crisis. Visitor arrivals slid 12.7 percent in February compared with the same month in 2008.

Visitor spending fell 15.9 percent, or by $161 million, to $852.5 million, according to a report Tuesday by the state Department of Business, Economic Development and Tourism.

Oahu fared better than the other islands, posting a drop of 6.6 percentage points to 78.3 percent in hotel occupancy. Hotel room rates declined by 12.3 percent to $154.36.

The report also found that less than two-thirds of rooms were booked on the Big Island. The occupancy rate fell 13.3 percentage points from 77.2 percent to 63.9 percent. The island's room rates fell 12 percent to $191.51.

On Kauai, hotels saw room rates fall 12.1 percentage points from 82.1 percent to 70 percent. Room rates slipped to $197.15 from $214.29.

The state's luxury resorts suffered significant declines in February, with the Kohala Coast posting the largest drop in occupancy, down 15.8 percentage points to 61.4 percent. Room rates tumbled 14 percent to $257.75.

Wailea's occupancy slid 9.5 percentage points to 72.4 percent, while room rates declined 15.8 percent to $369.43.

The hotel survey is compiled by Smith Travel Research in conjunction with Hospitality Advisors.

The survey included 164 properties representing 47,795 rooms, or 83.9 percent of all lodging properties with 20 rooms or more in Hawaii.

 
 

 

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Article Photos

The Maui News file photo
Marc and Wendy Newkirk of Dallas relax at Baldwin Beach Park last year. Visitor arrivals fell 12.7 percent last month compared with the same time last year, according to a report by the state Department of Business, Economic Development and Tourism.