Meanwhile, domestic air seats remain well above 2019 levels. For the May to July period, total domestic air seats are 17.3% above 2019; with HNL up 16.6%, Kahului up 13%, Kona up 26%, and Lihue up 24%. This indicator of demand continues and won't be slowed by the return of Asian visitors.
The return of eastbound arrivals is showing up in recent pricing for Waikiki hotels. Elizabeth Churchill has been pulling asking rates for Waikiki beachfront hotels since the pandemic started. She recently noted that this is the first rate pull where rates are actually aligned throughout all the properties based on seasonality and asset class/status. Elizabeth thinks this is a huge indication that demand/pace is getting back to pre-pandemic levels, even without Japanese visitors on the books.
Hotel Performance - Neighbor Island Hotels Have a Great March
Neighbor island hotels continued their strong performance in the first quarter of 2022. We note that the performance for the month of March is even more shocking.
First Quarter of 2022
- The State of Hawaii is down 10 percentage points in occupancy but up 24% in rate resulting in a 9% increase in RevPAR
- Oahu is still down relative to 2019 with occupancy down 13 percentage points, rate up 3% and RevPAR down 13%
- Maui is up 41% in ADR and 22% in RevPAR
- Hawaii island is up 42% in ADR and 38% in RevPAR
- Kauai is up 34% in ADR and 35% in RevPAR
March 2022
- The State of Hawaii is down 4 percentage points in occupancy but up 33% in rate resulting in a 27% increase in RevPAR
- Oahu is still down relative to 2019 with occupancy down 6 pct points rate up 6% and RevPAR down 2%
- Maui is up 49% in ADR and 40% in RevPAR
- Hawaii island is up 53% in ADR and 56% in RevPAR
- Kauai is up 64% in ADR and 82% in RevPAR
Hotel Investment Market
Hawaii's strong recent performance is supporting aggressive hotel pricing but activity remains slow.
- Trinity Investments has received a strong response since offering the 759-room Westin Maui for sale.
- The 16-room Paia Inn is in escrow.
