In June, hotels across Hawaii experienced a decline in both occupancy and room rates, as reported by the Hawaii Tourism Authority (HTA). The statewide occupancy rate was 75.5%, a decrease of 1.2 percentage points compared to the previous year. Additionally, the Average Daily Rate (ADR) dropped by 3.7% year over year, amounting to $373 across the Islands. This data was released on July 23 by the HTA.
Revenue and Performance
The hotel room revenue for Hawaii totaled $470.8 million in June, marking a 5.1% decrease from the same month in the prior year. Throughout the first half of the current year, the statewide hotel occupancy remained fairly steady at 74.7%, showing little change from the previous year. However, the statewide hotel room revenue for the same period amounted to $2.8 billion, reflecting a 2.3% decline year over year.
Impact on Maui
Maui, one of the islands in Hawaii, is still on the path to recovery from the wildfires that occurred in Lahaina last year. In June, hotels in Maui reported an occupancy rate of 66.7%, a significant decrease of 9.2% year over year. The ADR for Maui hotels in June was $562.9, which indicated a nearly 10% drop from the previous year. Interestingly, the ADR of $562.9 in June 2024 for Maui hotels is a 43% increase from the rates charged before the pandemic in June 2019, as reported by the HTA.
The hospitality industry in Hawaii faced challenges in June, with declines in occupancy rates and room rates across the islands. While the statewide numbers remained relatively stable, Maui saw a significant decrease in occupancy as it continues its recovery journey from the wildfires. The comparison between the ADR before the pandemic and the current rates on Maui highlights the impact of recent events on the hotel industry. It will be crucial for hotels in Hawaii to adapt and innovate to navigate through these challenging times and work towards recovery and growth in the future.