Moderate Hotel Occupancy Growth Forecast for 2014

According to a forecast issued by Hospital Advisors LLC, moderate hotel occupancy growth can be expected for 2014.  Oahu is expected to lead the way with an 88.6% occupancy rate (85.9% in 2013) with Maui coming in second with an 76.9% occupancy rate (73.7% in 2013). Kauai is forecast to also see an improvement at 71.6% occupancy rate (70.2% in 2013) while the Big Island should have a 67.8% occupancy rate (64.5% in 2013).  Room prices are expected to hold steady with resort and retain transactions increasing slightly.  President and CEO of Hospitality Advisors LLC, Joseph Toy, stated, "We had a pretty strong summer, although our occupancy retreated a bit from the previous one.  Our rates, however, obviously went really high mostly because of compression and yield management."

Vice President of commercial real estate company Colliers International, Mark Bratton, added, "It's a great time to buy a Hawaii hotel, and investors are interested.  I think we'll see three to four more hotel sales in Waikiki this year.  The $99-a-night rooms are disappearing in Waikiki.  They are becoming $139 rooms as new owners renovate and seek returns."  Bratton noted that retail stores in hotels have also increased to $14.83 per sq ft as compared to $10.09 in 2012.

Source: Honolulu Star Advertiser, 10-4-2013, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Broker-in-Charge, REALTOR®
Global Executive Realty, LLC
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