According to a report released by the Smith Travel Research and Hospitality Advisors LLC, Waikiki is very much on track to set a record year in terms of occupancy, average daily rate and revenue per available room in 2012. The report noted that Waikiki had an average hotel occupancy of 84.8 percent through the month of May and an average room rate of $174.25 during that same period. These two numbers surpass the previous records of 83.4 percent occupancy set in 2006 for the same time frame and the average daily rate record of $168.13 for the first 5 months of the year set in 2008. More impressively, the revenue per available room was $147.84, an increase from the record set in 2007 of $129.50.
General Manager of Hyatt Regency Waikiki Beach Resort and Spa, Jerry Westenhaver, stated, “Pretty much all the major hotels agree it will be a record year unless something changes. We’re all on pace to definitely see a good fall, and this is a record summer already. What a difference a year makes. Last year all of us were playing in the discount world because of the earthquake and tsunami, but Japan bounced back at the end of August and September, and since September there really have been some strong numbers across the board in Waikiki. We normally end up with one or two good revenue streams and the rest are softer, but we’re seeing all the major markets, Japan, Korea, Australia, Canada, North America and even Europe, showing a good, healthy increase. We continue to be on a roll, and we think that basically we’ll see the fall following in suit.”
President and CEO of Hospitality Advisors, Joseph Toy, added, “Oahu has done extremely well and Maui is beginning to do well, but there are some pockets of softness. Wailea (on Maui) is doing well. Kauai and the Big Island are beginning to lag. While we are beginning to see some strengthening in the market, my view is it’s still an uneven recovery until the other islands come back as well. Much of the state recovery in the hotel industry has been largely driven by Waikiki, and to a lesser extent on Maui.”
In comparison to Waikiki’s record setting numbers, the island of Oahu as a whole had an occupancy rate of 83.7 percent during the first five months of 2012. Maui posted a 75.4 percent occupancy rate, while Kauai had a 68.5 percent occupancy rate. The Big Island of Hawaii had the lowest occupancy rate of the state with 62.8 percent.
Source: Honolulu Star Advertiser, 7-10-2012, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Broker-in-Charge, Realtor®
Global Executive Realty, LLC
www.myhawaiihomesearch.com
www.myhawaiicondo.com
www.myhawaiidreamhome.com
