In July 2024, Hawaii hotels experienced a slight boost in occupancy rates, with a statewide hotel occupancy of 78.4%. This marked a 1.2% increase compared to the previous year. However, despite the increase in occupancy, the Average Daily Rate (ADR) plummeted by 5.5% year over year, reaching $385 across all the Islands. This decline in ADR significantly affected the overall room revenue for Hawaii hotels during the month.
According to data from the Hawaii Tourism Authority (HTA), the total room revenue for Hawaii hotels in July 2024 amounted to $522.1 million. This represented a 4.3% drop compared to the same period in the previous year. The decline in room revenue was largely attributed to the decrease in ADR, which offset the marginal increase in occupancy rates.
Looking at the year-to-date performance of Hawaii’s hotel industry, the HTA reported that statewide hotel occupancy for the first seven months of 2024 was 75.3%, remaining relatively unchanged compared to the previous year. In terms of room revenue, Hawaii hotels generated a total of $3.3 billion, reflecting a 2.6% decrease year over year. This data indicates a challenging year for the Hawaii hotel industry, with performance metrics showing a mixed picture of stability and decline.
Hotels on Maui continued to face challenges following the wildfires that occurred in Lahaina last August. The impact of the wildfires on tourism in the area has been significant, affecting hotel occupancy rates and room revenue. Despite efforts to recover from the aftermath of the wildfires, Maui’s hotel industry has been struggling to regain momentum and attract visitors back to the region.
The state of Hawaii’s hotel industry in July 2024 showed a paradoxical trend of increased occupancy rates paired with declining room revenue. The challenges faced by hotels on Maui serve as a reminder of the vulnerability of the tourism sector to external factors such as natural disasters. Moving forward, it will be crucial for Hawaii’s hoteliers to assess their pricing strategies and marketing efforts to navigate the uncertain landscape of the tourism industry.