Hawai’i Hotels Report Mixed Results: Lower Occupancy but Lead in Revenue

Hawaii’s hotel industry is facing a paradoxical situation as reported by the Hawaii Tourism Authority with data from STR, Inc. Despite a decline in occupancy rates in June and the first half of the year, the state continues to lead the nation in hotel revenue. The data surveyed 172 properties, accounting for 86.8 percent of all lodging properties with 20 rooms or more across Hawaii.

Comparatively, this June saw a slight decrease in key metrics such as occupancy rates, average daily rates (ADR), and revenue per available room (RevPAR) compared to June 2024. Specifically, RevPAR was down by 5 percent at $281, ADR decreased by 3.7 percent, and occupancy dipped to 75.5 percent, a slight 1.2 percent decrease from the previous year. Despite these decreases, the figures still represent a significant improvement from 2019, with RevPAR and total hotel room revenue considerably higher than pre-pandemic levels.

For the first half of the year, the pattern remained similar. RevPAR was $276, a decrease of 2.3 percent from 2023 but still 22.7 percent higher than in 2019. ADR was recorded at $370, showing a 2.5 percent decrease from the previous year but a 32 percent increase from 2019 figures. Occupancy rates showed a marginal increase of 0.1 percent from the first half of 2023, yet were still 5.7 percent lower than the first half of 2019. Statewide, hotel revenues reached $2.8 billion, slightly lower by 2.3 percent compared to last year, but still 26.2 percent higher than in 2019.

Internationally and across the U.S., Hawaii remains competitive. It secured the highest RevPAR and ADR during the first half of the year, surpassing other major destinations like New York City and Miami. In terms of occupancy, O’ahu led globally among “sun and sand” destinations with an 80.1 percent rate, followed by Aruba and Puerto Rico. Despite some declines, Hawaii’s hospitality industry continues to show resilience, maintaining a strong revenue stream even in the face of fluctuating occupancy levels. The Hawaii Tourism Authority continues its efforts to attract more visitors, aiming to bolster the state’s tourism industry further.