Maui County sees largest vacation rental supply, occupancy, average rates in state

Maui County had the largest vacation rental supply, occupancy and average daily rates of all four counties last month, according to a recent state report.

In December, Maui County had the largest vacation rental supply of all four counties with 209,600 available unit nights (22% higher than 2021 and 29% under 2019), said the Hawai‘i Vacation Rental Performance Report, which was published by the state on Wednesday. Unit demand was 129,800 unit nights (12% above 2021 and 44% below 2019), resulting in 62% occupancy (5 percentage points under 2021 and 17 percentage points below 2019) and ADR at $391 (16% more than 2021 and 41% over 2019). 

Maui County hotels reported ADR at $734 and occupancy of 64% last month.

O‘ahu vacation rental supply was 188,600 available unit nights. Unit demand was 110,000 unit nights, resulting in 58% with ADR at $255. In comparison, O‘ahu hotels reported ADR at $320 and occupancy of 74% for December 2022.

The island of Hawai‘i vacation rental supply was 161,500 available unit nights last month. Unit demand was 90,700 unit nights, resulting in 56% occupancy with ADR at $268. Hawai‘i Island hotels reported ADR at $479 and occupancy of 71.8 percent.

Kaua‘i had the fewest number of available vacation rental unit nights in December at 104,500. Unit demand was 54,300 unit nights, resulting in 52.0 percent occupancy with ADR at $390. Kaua‘i hotels reported ADR at $444 and occupancy of 72%.

Overall, vacation rentals across Hawaiʻi reported increases in supply, demand and average daily rate (ADR), with lower occupancy, in December 2022 compared to December 2021, the. In comparison to pre-pandemic December 2019, ADR was higher in December 2022, but vacation rental supply, demand and occupancy were lower.

In December 2022, the total monthly supply of statewide vacation rentals was 664,200 unit nights (+33.6% vs. 2021, -22.5% vs. 2019) and monthly demand was 384,800 unit nights (+15.6% vs. 2021, -40.4% vs. 2019). This combination resulted in an average monthly unit occupancy of 58% (-9.0 percentage points vs. 2021, -17.4 percentage points vs. 2019) for December. Occupancy for Hawai‘i’s hotels was 71% in December 2022.

The ADR for vacation rental units statewide in December was $323 (+15.2% vs. 2021, +37.9% vs. 2019). By comparison the ADR for hotels was $440 in December 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.

For the full year 2022, Hawaiʻi vacation rental supply was 7.5 million unit nights (+7.1% vs. 2021, -27.0% vs. 2019) and demand was 4.9 million unit nights (+9.9% vs. 2021, -35.1% vs. 2019). 2022 average daily unit rate was $296 (+19.6% vs. 2021, +42.5% vs. 2019). Statewide vacation rental occupancy for 2022 was 65.9 percent (+2.5 percentage points vs. 2021, -11.1 percentage points % vs. 2019). In comparison, statewide hotel ADR was $371 and occupancy was 73.6 percent.

The state Department of Business, Economic Development & Tourism issued Wednesday the Hawai‘i Vacation Rental Performance Report for the month of December utilizing data compiled by Transparent Intelligence Inc.