Hawaii hotels seeing improved demand, but rate still way off

HAWAII Hotels in America’s tropical paradise are increasingly full, but ADR is recovering much more slowly, according to a new report.

Statewide hotel occupancy reached 70.8% in September, which is more than 7 percentage points higher than a year ago, according to Hospitality Advisors LLC. Unfortunately for Hawaii hoteliers, ADR actually dropped during the month. ADR in September reached US$159.88, slipping from US$160.41, due to widespread discounting on the islands.

Hawaii RevPAR rose to US$113.20 from US$102.02 during September compared to a year ago. Hotel revenues for the first three quarters of 2010 reached US$1.9 billion, a 7.4% improvement from a year ago. However, the figure is still off by about 20% compared to the peak of 2006.