Despite continued strength in Hawaii’s visitor industry, the total volume of Hawaii hotel transactions dropped by 63% in 2015 while the number of transactions dropped by 17%.
A recent article in the Honolulu StarAdvertiser noted mixed results for October but year-to-date numbers are all up.
A substantial portion of the low end of the Waikiki hotel inventory is being renovated and will dramatically reduce the number of hotel rooms in the economy segment.
The Hawaii hotel industry had a great summer and a particularly strong August. Given the continued growth in air seats we should see similar levels of RevPAR growth through the end of 2015.
The Hawaii hotel investment market remained positively buoyant through the first half of 2015. The continued strength is driven by improved visitor metrics, better bottom line hotel performance and lower investor yield requirements.
Hawaii hotels seemed to be dipping in revenue in the first quarter of this year but March was able to turn it all around. Hotels statewide set a new first quarter record at $1.43 billion in revenue because of March’s performance. Besides just revenue, March saw a rise in occupancy rates in the islands as well. As The Star Advertiser writes in their article on the subject, “Although the growth rate slowed for Hawaii hotels during the first quarter of this year, the industry still managed to set total revenue records and attain the nation’s highest average daily rate. Gains in March occupancy, average daily rate (ADR) and revenue per available room (RevPAR) helped set a new total hotel revenue record for the month and contributed to a stronger first-quarter performance.” We at Colliers’ are starting to see some competition for Hawaii Hotel rooms and some push back on the constant rise in daily rates. We believe this is a sign of a shift in the market and our economy. Read the rest of the Star Advertiser article …