Maui County hotels start year with top revenues, daily rates

High revenues continue to offset occupancy, which is still lowest in the state

As hotels across the state performed much stronger in January than at the same time last year, Maui County continued to top them all in revenue and average daily rates while trailing behind in occupancy rates, according to a recent Hawaii Tourism Authority report.

The Hawaii Hotel Performance Report showed Maui County hotels achieving the highest revenue per available room in January at $429, which is up 26.6 percent versus January 2022 and up 29.3 percent versus January 2019 before the COVID-19 pandemic, with an average daily rate of $635 — and increase of 11.2 percent compared to 2022 and 44.7 percent from 2019.

Occupancy at Maui County hotels last month was at 67.6 percent, which is 8.2 percentage points more than 2022, but down 8 percentage points compared to 2019. It was the lowest occupancy rate among all the counties.

Overall, Hawaii hotels statewide reported stronger revenue per available room, average daily rates and occupancy in January compared to January 2022. When compared to pre-pandemic levels in January 2019, statewide daily rates and room revenue were also higher, but occupancy rate was lower in January 2023.

According to HTA, statewide revenue per room in January was $286, an increase of 26.9 percent from the previous year, with a 12.3 percent rise in average daily rates at $391. Occupancy was at 73 percent, which is an increase of 8.4 percentage points compared to January 2022.

Compared with January 2019, revenue per room was 20.8 percent higher, driven by higher average daily rates (up 31.5 percent), which offset lower occupancy (down 6.5 percentage points), the report said.

January’s hotel survey by STR Inc. included 154 properties representing 47,189 rooms, or 85.2 percent of all lodging properties with 20 rooms or more in the Hawaiian islands, according to a news release. This included 40 properties in Maui County, representing 9,757 rooms (72.3 percent).

Vacation rental and timeshare properties were not included.

According to the survey, Hawaii hotel room revenues statewide totaled $490.6 million in January, which is up 26.3 percent compared to 2022 and 23.8 percent from 2019.

In January Maui’s luxury resort region of Wailea had the highest revenue per room of $594, which is up 13.4 percent versus 2022 and 6.4 percent versus 2019. The average daily room rate was at $1,017, a 12.3 percent increase compared to January 2022 and a significant jump of 56.1 percent versus 2019.

Still, occupancy in Wailea was at 58.4 percent last month, a slight rise of 0.6 percentage points compared to 2022, and a decrease of 27.3 percentage points from January 2019.

The report showed the Lahaina/Kaanapali/Kapalua region having revenue per room of $397 last month, which is an increase of 37.8 percent compared to 2022 and 44.4 percent versus 2019. The average daily rate rose 15.7 percent to $553 versus 2022 and 49.1 percent compared to 2019.

Occupancy in West Maui was higher than the south side at 71.7 percent, which is 11.5 percentage points more when compared to January 2022, but down 2.4 percentage points compared to 2019.

Hotels on Hawaii island performed second best

among all the counties, collecting a revenue per room of $324, which is a 12 percent increase from 2022 and a substantial increase of 41.7 percent compared to 2019.

Average daily room rates were at $427, just a slight 2.4 percent increase from 2022, but a 43.3 percent increase from 2019. Occupancy was at 76 percent, which is 6.5 percentage points more than 2022, but a small decline of 0.9 percentage points compared to 2019.

Hotels on Kauai reported room revenue of $314 in January, which is a 30.8 percent increase from 2022 and 31.8 percent from 2019.

The average daily rate was at $420, which is 13.3 percent higher than January 2022 and 31.1 percent higher than 2019. Occupancy was up 10 percentage points from 2022 at 74.8 percent, which was just 0.4 percentage points higher than 2019.

Oahu hotels reported the lowest revenue per room among the counties, averaging $209, which is still a 32.5 percent increase from January 2022 and a 5.5 percent increase versus 2019. The average daily rate was at $280, a 17 percent increase from 2022 and up 16.8 percent from 2019, while occupancy was at 74.4 percent — 8.7 percentage points more than 2022, but 8 percentage points down from 2019.

Statewide, luxury properties earned room revenue of $536, with an average daily rate at $872 and occupancy of 61.4 percent.

Midscale and economy-class properties earned room revenue of $206, with an average daily rate of $276 and occupancy of 74.8 percent.