Hotels across the Aloha State generated $5.3 billion in total revenue last year, breaking the previous record of $4.8 billion set in 2012.
Including sales from sectors like food and beverage, retail, spa and parking, Hawaii’s 2013 total hotel revenue also enjoyed a substantial boost from increased average daily rates (ADR), which jumped 10.8% year over year to an all-time high of $227.07, according to a report released March 11 by Hospitality Advisors and Smith Travel Research.
“While the new record in hotel revenue is welcome news, the results for the year were actually mixed,” Joseph Toy, president and CEO of Hospitality Advisors, said in a statement. “The strength of the market was clearly evident during the first half of the year, but there was also a definite softening in visitor arrivals and room demand during the second half, particularly on the Neighbor Islands.”
Statewide hotel occupancy dropped slightly across Hawaii in 2013, slipping less than a percentage point, to 76.2%.
Hawaii finished fifth on a ranking of the nation’s top five hotel markets for occupancy in 2013, finishing behind first place New York (84.6%), San Francisco/San Mateo, Calif. (83%), Miami-Hialeah, Fla. (77.9%), and Los Angeles-Long Beach, Calif. (76.8%).
The Aloha State’s ADR last year was second, however, only to New York ($258.57).