December Report: Maui’s Hotel Occupancy Rate Highest in Hawaiʻi; But Only 26% due to Pandemic

For December 2020, hotels throughout Hawaiʻi suffered substantial declines in revenue per available room (RevPAR), average daily rate (ADR) and occupancy compared to December 2019 as the COVID-19 pandemic continued to drastically impact tourism, according to The Hawaiʻi Tourism Authority’s hotel performance report published by its research division.

Statewide RevPAR decreased to $69 (-75.6%), ADR fell to $291 (-17.6%) and occupancy declined to 23.8 percent (-56.4 percentage points) in December.

The report’s findings utilized data compiled by STR, Inc., which conducts the largest and most comprehensive survey of hotel properties in the Hawaiian Island.

For the year 2020, statewide hotel revenues were $1.4 billion (-69%) compared to $4.5 billion during the banner year of 2019. 

In December 2020, Hawaiʻi hotel room revenues statewide fell by 77.2 percent to $107.9 million, down from $472.6 million in December 2019. Room demand was 72.3 percent lower than the same period a year ago.

Room supply was only 6.6 percent lower year-over-year as properties continued to bring rooms back in service. Many properties that closed or reduced operations starting in April were reopened or partially reopened in December.

If occupancy for December 2020 was calculated based on the room supply from December 2019, occupancy would be 22.2 percent for the month.

All classes of Hawaiʻi hotel properties statewide continued to report RevPAR losses in December compared to a year ago.

• Luxury Class properties: RevPAR of $168 (-71.1%), with ADR at $865 (+8.9%) and occupancy of 19.5 percent (-54.0 percentage points).

• Midscale & Economy Class properties: RevPAR of $58 (-66.6%), with ADR at $196 (-6.9%) and occupancy of 29.6 percent (-52.8 percentage points).

All of Hawaii’s four island counties reported lower RevPAR and occupancy.

• Maui County hotels: Led the state in RevPAR, earning $130 (-68.5%), with ADR at $501 (-7.4%) and occupancy of 26 percent (-50.5 percentage points). The luxury resort area of Wailea earned $218 (-71.4%) in RevPAR, with ADR at $834 (-6.3%) and occupancy of 26.1 percent (-59.3 percentage points). 

• Oʻahu hotels: RevPAR of $43 (-81.8%) in December, with ADR at $184 (-36%) and occupancy of 23.6 percent (-59.5 percentage points). Waikiki hotels earned $40 (-82.7%) in RevPAR with ADR at $182 (-35.1%) and occupancy of 22.3 percent (-61.2 percentage points).

• Big Island hotels: RevPAR of $88 (-66.2%), with ADR at $329 (+0.1%) and occupancy of 26.8 percent (-52.7 percentage points). Kohala Coast hotels earned $146 in December RevPAR (-62.6%), with ADR at $542 (+10.2%) and occupancy of 26.8 percent (-52.2 percentage points).

• Kauaʻi hotels: RevPAR of $24 (-90.3%) in December, with ADR at $178 (-47.9%) and occupancy of 13.4 percent (-58.7 percentage points).

Year-to-Date December 2020

Hawaiʻi hotel performance in 2020 was dramatically impacted by the COVID-19 pandemic. Of note, 2019 was a banner year for Hawaiʻi’s hotel industry and 2020 began with that continued momentum. However, year-to-date, Hawaiʻi hotels earned $99 in RevPAR (-56.6%), which is less than half of the $229 RevPAR reported in 2019.

ADR decreased to $267 (-5.5%) and occupancy declined to 37.1 percent (-43.7 percentage points).

Many properties closed or reduced their supply starting April 2020, and began reopening in the fall. This resulted in room supply for the year at 14.1 million room nights, down 28.5 percent from 2019. Room demand was 5.2 million room nights, down 67.2 percent year-over-year.

Comparison to Top US Markets

In comparison to the top US markets during 2020, the Hawaiian Islands earned the highest RevPAR at $99 followed by the Miami/Hialeah market at $87 (-41.4%) and San Francisco/San Mateo at $74 (-64%).

Hawaiʻi also led US markets in ADR at $267 followed by Miami/Hialeah ($188, -4.1%) and San Francisco/San Mateo ($177, -29.2%).

With the US Mainland accessible for road trips and short-haul inter-continental flights, the Hawaiian Islands’ 2020 occupancy paled in comparison to STR’s top 25 markets; landing at No. 21. Tampa/St. Petersburg, FL topped the country in 2020 occupancy at 50.8 percent (-21.3 percentage points), followed by Phoenix (49.8%, -20.7 percentage points) and Norfolk/Virginia Beach (49.1%, -14.4 percentage points).

Comparison to International Markets

When compared to international “sun and sea” destinations, Hawaiʻi’s counties were in the upper half of the group for RevPAR year-to-date. Hotels in the Maldives ranked highest in RevPAR at $250 (-30.3%) followed by French Polynesia ($245, -37.6%) and Maui County ($140, -54.9%). The Big Island, Kauaʻi and Oʻahu ranked sixth, seventh and eighth, respectively.

The Maldives led in ADR at $782 (+42.8%) in 2020, followed by French Polynesia ($579, +2.3%) and Maui County ($414, +3.3%). Kauaʻi, the Big Island and Oʻahu ranked sixth, seventh, and eighth, respectively.

French Polynesia led in 2020 occupancy for sun and sea destinations (42.3%, -27 percentage points), followed by Oahu (39.0%, -45.1 percentage points) and the Puerto Vallarta region (38.7%, -28.4 percentage points). The Big Island, Maui County, and Kauaʻi ranked fourth, sixth and ninth, respectively.

Tables of hotel performance statistics, including data presented in the report are available for viewing online at:  https://www.hawaiitourismauthority.org/research/infrastructure-research/