HAWAII HOTEL PERFORMANCE REPORT
In March 2021, Hawaii hotels statewide reported similar revenue per available room (RevPAR), average daily rate (ADR), and occupancy compared to March 2020. This was the first time in a year where those performance indicators were not substantially down. However, results differed by county. Year-to-date, the statistics for statewide hotel RevPAR, ADR, and occupancy were much lower compared to the first three months of 2020 as Hawaii’s quarantine order for travelers due to the COVID-19 pandemic began on March 26, 2020, which immediately resulted in dramatic declines for the hotel industry.
According to the Hawaii Hotel Performance Report published by the Hawaii Tourism Authority’s (HTA) Research Division, statewide RevPAR in March 2021 was nearly the same as last year at $123 (-0.3%), ADR was slightly higher at $285 (+1.4%), and occupancy was 43.1 percent (-0.7 percentage points) (Figure 1). 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. For March, the survey included 150 properties1 representing 43,889 rooms, or 82.6 percent of all lodging properties and 86.9 percent of operating lodging properties with 20 rooms or more in the Hawaiian Islands, including full service, limited service, and condominium hotels. Vacation rental and timeshare properties were not included in this survey.
During March 2021, most passengers arriving from out-of-state and traveling inter-county could bypass the State’s mandatory 10-day self-quarantine with a valid negative COVID-19 NAAT test result from a Trusted Testing Partner through the state’s Safe Travels program. All trans-Pacific travelers participating in the pre-travel testing program were required to have a negative test result before their departure to Hawaii. Kauai County continued to temporarily suspend its participation in the state’s Safe Travels program, making it mandatory for all trans-Pacific travelers to Kauai to quarantine upon arrival except for those participating in a pre- and post-travel testing program at a “resort bubble” property as a way to shorten their time in quarantine. The counties of Hawaii, Maui and Kalawao (Molokai) also had a partial quarantine in place in March.
Hawaii hotel room revenues statewide declined to $192.4 million (-7.1%) in March. Room demand was 675,700 room nights (-8.4%) and room supply was 1.6 million room nights (-6.8%) (Figure 2). Many properties closed or reduced operations starting in April 2020. If occupancy for March 2021 was calculated based on the pre-pandemic room supply from March 2019, occupancy would be 14.1 percent for the month (Figure 5).
In March 2021, the top and bottom price classes showed growth compared to March 2020. Luxury Class properties earned RevPAR of $297 (+36.4%), with higher ADR at $776 (+33.6%) and occupancy of 38.2 percent (+0.8 percentage points). Midscale & Economy Class properties earned RevPAR of $93 (+2.8%) with ADR at $193 (+7.5%) and occupancy of 48.2 percent (-2.2 percentage points).
Maui County hotels reported better performance compared to last year and led the counties in March RevPAR of $228 (+18.7%), with ADR rising to $466 (+10.9%) and occupancy of 49.0 percent (+3.2 percentage points). Maui County’s March supply was 392,800 room nights (-0.3%). Maui’s luxury resort region of Wailea had RevPAR of $362 (+26.0%), with ADR at $802 (+27.2%) and occupancy of 45.2 percent (-0.5 percentage points). The Lahaina/Kaanapali/Kapalua region had RevPAR of $180 (+7.1%), ADR at $379 (+3.2%) and occupancy of 47.4 percent (+1.7 percentage points).
Hotels on the island of Hawaii also reported RevPAR growth to $157 (+26.7%), with ADR at $317 (+17.6%) and occupancy of 49.6 percent (+3.5 percentage points). The island of Hawaii’s March supply was 202,600 room nights (-2.2%). Kohala Coast hotels earned RevPAR of $262 (+46.2%), with ADR at $476 (+16.0%) and occupancy of 55.1 percent (+11.4 percentage points).
Oahu hotels continued to lag with RevPAR of $74 (-20.1%) in March, ADR at $184 (-16.1%) and occupancy of 40.4 percent (-2.0 percentage points). Oahu’s March supply was 870,100 room nights (-8.3%). Waikiki hotels earned $68 (-23.2%) in RevPAR with ADR at $173 (-19.5%) and occupancy of 39.4 percent (-1.9 percentage points).
Kauai hotels earned RevPAR of $62 (-53.3%), with ADR at $200 (-31.7%) and occupancy of 30.9 percent (-14.3 percentage points). Kauai’s March supply was 100,600 room nights (-22.9%).
First Quarter 2021
Through the first three months of 2021, Hawaii hotel performance statewide continued to be impacted by the COVID-19 pandemic. Hawaii hotels earned $87 in RevPAR (-59.5%), which is less than half of the $215 RevPAR reported for the same period in 2020. ADR decreased to $269 (-12.0%) and occupancy declined to 32.4 percent (-38.0 percentage points).
Total statewide hotel revenues for the first quarter were $394.1 million (-62.5%) compared to $1.05 billion in 2020. Room supply was 4.5 million room nights (-7.4%), and room demand was 1.5 million room nights (-57.4%).
Comparison to Top U.S. Markets
In comparison to the top U.S. markets during the first quarter, the Hawaiian Islands earned the third highest RevPAR at $87 (-59.5%). Florida destinations led the nation with Miami reporting the highest RevPAR at $143 (-20.9%), followed by Tampa at $89 (-14.9%) (Figure 20).
Hawaii led the U.S. markets in ADR for the first quarter at $269 (-12.0%) followed by Miami at $223 (-14.7%) and Tampa at $135 (-9.4%) (Figure 21).
With the U.S. Mainland accessible for road trips and short-haul inter-continental flights, the Hawaiian Islands’ first quarter occupancy paled in comparison to STR’s top 25 markets; landing at the 23rd spot (Figure 22). Tampa, Florida topped the country in occupancy at 68.5 percent (-4.3 percentage points), followed by Miami, Florida at 64.2 percent (-5.0 percentage points), and Phoenix, Arizona at 59.4 percent (-8.4 percentage points).
Comparison to International Markets
When compared to international “sun and sea” destinations, Maui County ranked second for first quarter RevPAR at $157 (-50.3%). Hotels in the Maldives ranked highest in RevPAR at $551 (+27.4%). The island of Hawaii, Oahu, and Kauai ranked fifth, tenth, and eleventh, respectively (Figure 23).
The Maldives led in first quarter ADR at $909 (+28.9%), followed by French Polynesia ($510, +5.5%) and Maui County ($457, -1.9%). The island of Hawaii, Kauai, and Oahu ranked sixth, ninth, and tenth, respectively (Figure 24). The Maldives also led in first quarter occupancy for “sun and sea” destinations (60.6 percent, -0.7 percentage points), followed by Puerto Rico (49.5 percent, -9.6 percentage points) and the Cancun region (38.5 percent, -24.8 percentage points). The island of Hawaii, Maui County, Oahu, and Kauai ranked fourth, seventh, ninth, and eleventh, respectively (Figure 25).
Tables of hotel performance statistics, including data presented in the report are available for viewing online at: https://www.hawaiitourismauthority.org/research/infrastructure-research/
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 March, the survey included 150 properties1 representing 43,889 rooms, or 82.6 percent of all lodging properties and 86.9 percent of operating lodging properties with 20 rooms or more in the Hawaiian Islands, including full service, limited service, and condominium hotels. The March survey included 71 properties on Oahu representing 26,571 rooms (94.7% of operating properties); 44 properties in the County of Maui, representing 9,930 rooms (78.4% of operating properties); 20 properties on the island of Hawaii, representing 4,964 rooms (76.0% of operating properties); and 15 properties on Kauai, representing 2,424 rooms (74.7% of operating properties).
 Based on 2019 census rooms.