Hotels across the Hawaiian Islands took in $1.9 billion in room revenue during the first nine months of 2010, an increase of 7.1% compared with the same period last year.
Occupancy figures were also better year to date through September, increasing 6% year over year to a statewide average of 71.2%, according to a monthly survey released by Hospitality Advisors and Smith Travel Research Nov. 14.
"Hawaii's recovery has been slowly but steadily improving over the historical lows of the past three years," said Joseph Toy, president and CEO of Hospitality Advisors. "While we continue to see demand build back into the market, price recovery will also continue to lag until the recovery becomes more consistent and even."
Although the year-over-year increase in room revenue was certainly positive news for Hawaii's visitor industry, 2010's year-to-date figures through September were still 20.5% lower than the record-breaking $2.39 billion earned during the first nine months of 2006.
Much of that disparity can be attributed to the discounted room rates still prevalent throughout the islands. Statewide average daily rate was $172.71 through September of this year, a drop of 3% when compared with the same period in 2009. Thanks to the significant boost in occupancy, however, revenue per available room across Hawaii climbed 6% year over year to $122.97.
When compared with the rest of the nation, Hawaii certainly seems to be holding its own. In terms of occupancy, the state finished third behind only New York and San Francisco, which posted rates of 80.9% and 76.2%, respectively, through September of this year. Hawaii finished second to New York in terms of ADR ($217.06) and RevPAR ($175.59).
During September, Hawaii continued to build on a strong summer season with occupancy growing 7.2% year over year, to 70.8% statewide. While ADR was essentially unchanged at $159.88, RevPAR jumped 11%, to $113.20, marking the fourth straight month of double-digit RevPAR growth.
"The outlook for 2011 has become more optimistic with the pickup in booking pace and the ongoing recovery in the U.S. and world economy," Toy said. "The lack of supply-side risk should also help the recovery given the lack of new, competitive rooms coming out of Hawaii's development pipeline."