2022 Hotel Performance – RevPAR Up Strongly on the Neighbor Islands
Relative to 2019 RevPAR, Kauai was up 50%, Hawaii Island up 47%, Maui up 32% and Oahu flat. Kauai has had the strongest recovery since the pandemic and is the only island that has experienced both rate and occupancy increases relative to 2019. Maui and Hawaii island have 50% increases in rate while Kauai has a 40% increase in rate plus a 5% increase in occupancy.
For the full year 2022, Kauai’s occupancy was 77.7% and the ADR was $398 resulting in a $309 RevPAR. Occupancy was 4.9% above 2019 and the average daily rate is up 41%. Maui’s occupancy is down to 68% but ADR is up to $607 and RevPAR is $410. Hawaii Island’s occupancy is down to 75%, ADR is up to $400 and RevPAR is $300. Oahu’s occupancy is down to 75%, but ADR is up to $268 and RevPAR is nearly level with 2019 at $202. Interestingly, for Oahu outside of Waikiki RevPar is up 15% driven by a 28% increase in rate.
For some round numbers, Oahu's RevPAR is now $200, Maui is at $400 and Kauai and Hawaii Island are at $300. I don't remember seeing this kind of disparity with Oahu as the underperforming island. It will be interesting to see how much the disparity shrinks when our Asian visitors return. Because hotels continue to be understaffed, pushing rates to the detriment of occupancy isn't necessarily a bad thing.
