January 2022 Hawaii Vacation Rental Performance Report

January 2022 Hawaii Vacation Rental Performance Report

Vacation rentals across Hawaii reported substantial increases in demand, occupancy and average daily rate (ADR) in January 2022 compared to January 2021, however vacation rental supply declined. In comparison to January 2019, ADR was higher in January 2022, but vacation rental supply, demand and occupancy were down.

The State of Hawaii Department of Business, Economic Development & Tourism (DBEDT) issued today the Hawaii Vacation Rental Performance Report for the month of January utilizing data compiled by Transparent Intelligence, Inc.

In January 2022, the total monthly supply of statewide vacation rentals was 528,000 unit nights (-21.7% vs. 2021, -28.0% vs. 2019) and monthly demand was 355,800 unit nights (+34.5% vs. 2021, -37.9% vs. 2019) (Figures 1 and 2). That resulted in an average monthly unit occupancy of 67.4 percent (+28.2 percentage points vs. 2021, -10.8 percentage points vs. 2019) for January. Occupancy for Hawaii’s hotels was 65.4 percent in January 2022.

The ADR for vacation rental units statewide in January was $295 (+22.1% vs. 2021, +35.0% vs. 2019). By comparison the ADR for hotels was $357 in January 2022. It is important to note that unlike hotels, units in vacation rentals are not necessarily available year-round or each day of the month and often accommodate a larger number of guests than traditional hotel rooms.

In January, legal short-term rentals were allowed to operate in Maui County and on Oahu, Hawaii Island and Kauai as long as they were not being used as a quarantine location.

In January 2022, domestic passengers could bypass the State’s mandatory five-day self-quarantine if they were up-to-date on their vaccination or with a negative COVID-19 pre-travel test result from a Trusted Testing Partner through the Safe Travels program. Passengers arriving on direct international flights were subjected to federal U.S. entry requirements which included proof of an up-to-date vaccination document and negative COVID-19 test result taken within one day of travel, or documentation of having recovered from COVID-19 in the past 90 days, prior to their flight.

The data in DBEDT’s Hawaii Vacation Rental Performance Report specifically excludes units reported in Hawaii Tourism Authority’s Hawaii Hotel Performance Report and Hawaii Timeshare Quarterly Survey Report. A vacation rental is defined as the use of a rental house, condominium unit, private room in private home, or shared room/space in private home. This report does not determine or differentiate between units that are permitted or unpermitted. The legality of any given vacation rental unit is determined on a county basis.

Island Highlights

In January, Maui County had the largest vacation rental supply of all four counties with 174,200 available unit nights (-36.0% vs. 2021, -17.6% vs. 2019). Unit demand was 115,100 unit nights (+6.0% vs. 2021, -35.4% vs. 2019), resulting in 66.1 percent occupancy (+26.2 percentage points vs. 2021, -18.2 percentage points vs. 2019) with
ADR at $363 (+28.3% vs. 2021, +27.2% vs. 2019). In comparison, Maui County hotels reported ADR at $619 and occupancy of 61.2 percent.

Oahu vacation rental supply was 160,200 available unit nights (+4.7% vs. 2021, -38.3% vs. 2019) in January. Unit demand was 105,800 unit nights (+47.7% vs. 2021, -45.5% vs. 2019), resulting in 66.0 percent occupancy (+19.2 percentage points vs. 2021, -8.7 percentage points vs. 2019) and ADR at $223 (+15.1% vs. 2021, +38.9% vs. 2019). Oahu hotels reported ADR at $242 and occupancy of 65.5 percent.

The island of Hawaii vacation rental supply was 114,200 available unit nights (-19.2% vs. 2021, -31.1% vs. 2019) in January. Unit demand was 82,200 unit nights (+20.7% vs. 2021, -32.1% vs. 2019), resulting in 72.0 percent occupancy (+23.8 percentage points vs. 2021, -1.1 percentage points vs. 2019) with ADR at $237 (+11.9% vs. 2021, +38.0% vs. 2019). Hawaii Island hotels reported ADR at $394 and occupancy of 71.6 percent.

Kauai had the fewest number of available vacation rental unit nights in January at 79,400 (-26.1% vs. 2021, -18.1% vs. 2019). Unit demand was 52,800 unit nights (+225.7% vs. 2021, -34.2% vs. 2019), resulting in 66.5 percent occupancy (+51.4 percentage points vs. 2021, -16.3 percentage points vs. 2019) with ADR at $382 (+26.3% vs. 2021, +35.7% vs. 2019). Kauai hotels reported ADR at $368 and occupancy of 67.1 percent.

Tables of vacation rental performance statistics, including data presented in the report are available for viewing online at: http://dbedt.hawaii.gov/visitor/vacation-rental-performance/

About the Hawaii Vacation Rental Performance Report

The Hawaii Vacation Rental Performance Report is produced using data compiled by Transparent Intelligence, Inc., which was selected by the Hawaii Tourism Authority (HTA) as the provider for these data services. This contract was transferred to DBEDT as of January 2022.

The report includes data for properties that are listed on Airbnb, Booking.com, HomeAway and TripAdvisor. Data for units included in HTA’s Hawaii Hotel Performance Report and Hawaii Timeshare Quarterly Report have been excluded from the Hawaii Vacation Rental Performance Report. This report also does not determine or differentiate between units that are permitted or unpermitted. The legality of any given vacation rental unit is determined on a county basis. DBEDT and HTA do not support illegal vacation rentals.

Starting from May 2021, Transparent began enriching their occupancy and price calculations with a direct feed of reservations self-reported from several local property managers, with the goal of refining the accuracy of these metrics as well as improving the market coverage. Currently, approximately 4 percent of the reservations analyzed are from direct reporting. This percentage will increase as more and more property managers are joining the data co-op. Important to note, supply is not affected by this change as supply is based on active inventory. For the avoidance of doubt, Transparent defines active inventory properties as those that have a searchable listing profile on at least one of the online travel agencies websites (Airbnb, Vrbo, Booking or Tripadvisor).

For January 2022, the report included data for 26,413 units, representing 45,266 bedrooms in the Hawaiian Islands.