LIHU‘E — Kaua‘i apparently didn’t need an epic event like the APEC summit to achieve solid gains in hotel occupancy levels, average daily rates (ADR) and revenues per available room (RevPar) during the month of November. “Strong occupancy and ADR
LIHU‘E — Kaua‘i apparently didn’t need an epic event like the APEC summit to achieve solid gains in hotel occupancy levels, average daily rates (ADR) and revenues per available room (RevPar) during the month of November.
“Strong occupancy and ADR gains resulted in a 20.6 percent rise in RevPar for Kaua‘i, the fourth consecutive month that Kaua‘i’s RevPar has increased by more than 20 percent,” states Hospitality Advisors’ Flash Report for November.
The report attributes the gains to recently completed renovations and direct flights from the Mainland.
“Reintroduction of renovated roomsproduced and an 8.8 percent increase in U.S. West visitor arrivals to Kaua‘i, which was facilitated by increased air service, contributed to the island’s gains in November,” the report states.
The St. Regis Princeville Resort reopened in 2009 after extensive renovation work totaling $100 million. In 2010, Kaua‘i Marriott Resort in Lihu‘e completed a $50 million makeover. Shortly after, the chain purchased the Aston Kaua‘i Beach Hotel at Makaiwa, Kapa‘a, and invested $13 million in creating the Marriott Courtyard Kaua‘i at Coconut Beach. Late last year, the Grand Hyatt Kaua‘i Resort and Spa finished its $18.5 million room renovation project. The Sheraton Kaua‘i Resort underwent a $16 million renovation last year to update its rooms, the front desk, pool and create a new RumFire restaurant.
In addition to non-stop West Coast service from Los Angeles and San Francisco, direct flight service has been added from Oakland and San Jose. Hawiian Airlines and Mokulele are rolling out direct inter-island service to Maui.
Although Kaua‘i occupancy levels are traditionally lower than Maui and O‘ahu, it experienced greater gains than Maui and even O‘ahu during November, despite the worldwide draw of APEC events in Waikiki.
Kaua‘i occupancy levels increased from 50.8 percent to 58.4 percent for the month, whereas O‘ahu rose from 75.2 percent to 78.1 percent. Statewide, occupancy levels rose 3.3 percent to 70.9 percent.
Kaua‘i room rates were up an average of $8.77 to $187.08 last year. Statewide room rates rose an average of $18.08, or 8.9 percent, to 184.79, representing the 13th straight month of ADR gains. Hospitality Advisors reports that high-paying delegates attending the APEC summit helped boost the statewide ADR average.
Hotel revenues per room increased $18.67 to $109.25 in Kaua‘i for November, and was up $16.30, or 14.2 percent, to $131.02 for the state due to the rise in both occupancy and ADR.
Most notably, O‘ahu broke its 2006 record for RevPar, achieving a 9.6 percent increase to $135.64. Maui had the highest ADR at $216.41, up 4.7 percent. The Big Island continues to lag in its recovery, with the lowest occupancy and smallest gains. ADR is down slightly to $173.83, but slight improvements in occupancy levels helped RevPar improve modestly, the Flash Report states.
Luxury and upscale hotels have led the way in gains for the month. Average luxury room rates were $264.07, up 7.9 percent, and upscale hotels averaged $165.93 per room, up 9.2 percent.
For more information about Hospitality Advisors or this report, visit www.hospitalityadvisors.com.
• Vanessa Van Voorhis, staff writer, can be reached at 245-3681, ext. 251, or by emailing vvanvoorhis@thegardenisland.com.
