According to a report issued by Hospitality Advisors LLC and Smith Travel Research, the state of Hawaii hit a record $1.44 billion in hotel revenue during the first three months of 2014. This record setting number meant that hotel guests spent $250.36 a night on the average hotel room, an increase of 6.2 percent from the same period a year prior. President and CEO of Hospitality Advisors, Joe Toy, commented, "While high occupancy on Oahu and Maui continue to support strong (average daily rate) gains, there has been a noticeable moderation in price increases over the past six months. Room rates have been increasing, but we've been seeing the growth rate decline. Part of it is that we've actually been seeing a decline in room demand for the past 11 months and changes in price always lag changes in demand."
Managing Director for Starwood Hotels and Resorts, Kelly Sanders, cautioned, "Visitors from Asia, primarily Japan, really helped the first quarter come in much stronger than we had expected. However, it got worse in April, which was a very tough month across all hotels in Waikiki and then continued into May."
Source: Honolulu Star Advertiser, 5-15-2014, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Principal Broker, REALTOR®
Global Executive Realty, LLC
www.myhawaiihomesearch.com
www.myhawaiicondo.com
www.myhawaiidreamhome.com
