In June 2020, Hawaii hotels statewide reported substantial declines in revenue per available room (RevPAR), average daily rate (ADR), and occupancy compared to June 2019 as tourism continued to be impacted significantly by the COVID-19 pandemic.
According to the Hawaii Hotel Performance Report published by Hawaii Tourism Authority’s (HTA) Research Division, statewide RevPAR decreased to $25 (-89.3%), ADR fell to $162 (-42.4%), and occupancy declined to 15.6 percent (-68.3 percentage points) (Figure 1) in June.
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.
In June, Hawaii hotel room revenues statewide fell by 94.2 percent to $22.3 million. Room demand was 89.9 percent lower than the same period last year. Room supply decreased by 45.6 percent year-over-year (Figure 2). Many properties closed or reduced operations starting in April. Since March 26, all passengers arriving from out-of-state were required to abide by a mandatory 14-day self-quarantine. The quarantine order was expanded on April 1 to include interisland travelers; the interisland quarantine ended on June 15.
All classes of Hawaii hotel properties statewide reported RevPAR losses in June compared to a year ago. Luxury Class properties earned RevPAR of $26 (-94.0%), with ADR of $335 (-39.5%) and occupancy at 7.9 percent (-72.1 percentage points). Upper Midscale Class properties earned slightly higher RevPAR ($29, -79.8%) than Luxury Class hotels due to comparatively higher occupancy at 18.6 percent (-67.9 percentage points).
All of Hawaii’s four island counties reported lower RevPAR and occupancy. Hotels on the island of Hawaii led the state in June RevPAR at $37 (-80.8%), with occupancy of 26.9 percent (-51.5 percentage points) and ADR at $139 (-44.1%).
Maui County hotels had the lowest June RevPAR at $16 (-95.1%), with ADR of $218 (-44.7%) and occupancy at 7.2 percent (-73.5 percentage points).
Oahu hotels reported $25 (-88.2%) for RevPAR in June, with ADR at $164 (-32.5%) and occupancy of 15.4 percent (-72.5 percentage points). Waikiki hotels earned $20 (-90.3%) in RevPAR with ADR at $164 (-30.8%) and occupancy of 12.4 percent (-75.8 percentage points).
Kauai hotels earned RevPAR of $29 (-86.0%) in June, with ADR at $149 (-46.7%) and occupancy of 19.6 percent (-54.7 percentage points).
First Half of 2020
Through the first six months of 2020, Hawaii hotels statewide reported modest ADR growth and lower occupancy, which resulted in lower RevPAR compared to the first half of 2019. Statewide RevPAR declined to $144 (-35.9%), with ADR of $291 (+3.9%) and occupancy of 49.7 percent (-30.8 percentage points) (Figure 8).
Year-to-date performance was the result of a strong first quarter countered by a very weak second quarter. In the first half of 2020, Hawaii hotel room revenues fell by 50.6 percent to $1.09 billion compared to the $2.21 billion earned in the first half of 2019. There were approximately 2.2 million fewer available room nights (-22.9%) and approximately 4.1 million fewer occupied room nights (-52.4%) compared to a year ago (Figure 9). Many hotel properties across the state were closed or had rooms out of service due to COVID-19 impacts. Other properties were already closed for renovation or had rooms out of service for renovation.
All classes of Hawaii hotel properties statewide reported lower RevPAR, higher ADR, and occupancy declines in the first half of 2020. Luxury Class properties reported RevPAR of $317 (-26.0%), with ADR of $615 (+9.4%) and occupancy of 51.6 percent (-24.7 percentage points). At the other end of the price scale, Midscale & Economy Class hotels reported RevPAR of $94 (-35.2%), with ADR of $175 (+0.02%) and occupancy of 53.4 percent (-29.0 percentage points).
Comparison to Top U.S. Markets
In comparison to top U.S. markets during the first half of 2020, the Hawaiian Islands earned the highest RevPAR at $144 followed by the Miami/Hialeah market at $126 (-27.1%) and San Francisco/San Mateo at $98 (-52.7%) (Figure 10). Hawaii also led the U.S. markets in ADR at $291 followed by Miami/Hialeah and San Francisco/San Mateo (Figure 11). Miami/Hialeah topped the country in occupancy at 54.5 percent (-25.1 percentage points), followed by New York and Tampa/St. Petersburg, Florida (Figure 12). The Hawaiian Islands ranked eighth for occupancy.
Hotel Results for Hawaii's Four Counties
Hotel properties in Hawaii’s four island counties all reported RevPAR decreases in the first half of 2020. Maui County hotels led the state overall in RevPAR at $218 (-31.1%), with ADR at $444 (+10.0%) and occupancy of 49.2 percent (-29.3 percentage points).
Kauai hotels earned RevPAR of $135 (-34.4%), with ADR at $294 (+2.8%) and occupancy of 46.1 percent (-26.0 percentage points).
Hotels on the island of Hawaii reported a decline in RevPAR to $139 (-32.0%), with ADR at $277 (+4.2%) and occupancy of 50.2 percent (-26.7 percentage points).
Oahu hotels earned RevPAR of $118 (-39.1%), with ADR at $235 (+0.8%) and occupancy of 50.3 percent (-32.9 percentage points).
Comparison to International Markets
When compared to international “sun and sea” destinations, Hawaii’s counties were in the upper half of the group for RevPAR in the first half of 2020. Hotels in the Maldives ranked highest in RevPAR at $292 (-29.8%) followed by Maui County, the island of Hawaii, Kauai, and Oahu (Figure 13). Data were not available for Aruba and French Polynesia.
The Maldives also led in ADR at $744 (+25.3%) in the first half of 2020, followed by Maui County. Kauai, the island of Hawaii, and Oahu ranked fourth, fifth, and sixth, respectively (Figure 14).
Oahu led in occupancy for sun and sea destinations in the first half of the year, followed by the island of Hawaii, Maui County and Kauai (Figure 15).
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 June, the survey included 79 properties representing 19,200 rooms, or 35.8 percent of all lodging properties and 65.3 percent of operating lodging properties with 20 rooms or more in the Hawaiian Islands, including full service, limited service, and condominium hotels.
Tables of hotel performance statistics, including data presented in the report are available for viewing online at: https://www.hawaiitourismauthority.org/research/infrastructure-research/