Air Seats

From the HTA’s air seat survey for the April to June period, total air seats to Hawaii are up 4.8% over 2022 as international travel is rebounding. International air seats are up 71% over 2022 but still down 38% from 2019. The number of seats from Japan is one-half of what it was in 2019. International seats now comprise only 17% of the total seats coming to Hawaii. 



Domestic seats are down 2.8% from 2022 but up 12% from 2019. All neighbor islands are experiencing declines relative to 2022 with Kahului down 8%, Kona down 6%, and Lihue down 11% but all are outperforming 2019. Honolulu is the only airport gaining domestic seats relative to 2022.

First Quarter Hotel Performance

Erik Kloninger looked at the market performance of Hawaii’s hotels. Specifically, the room demand, ADR, and RevPAR for Q1 2023 and 2022 were analyzed relative the baseline Q1 2019 level.

Room Demand

During Q1 2023, statewide room demand rose to 96% of 2019ʻs level from 90% in Q1 2022. Room demand exceeded pre-pandemic levels on Kauai and the Big Island, although room demand decreased slightly on Hawaii Island compared to Q1 2022. Oahu’s room demand equaled 94% of the 2019 level, an increase from Q1 2022ʻs 86% mark and trailing Maui by just one percentage point.

Average Daily Rate

ADRs on all islands were substantially higher than 2019 levels. The statewide ADR equaled 133% of 2019 levels, led by Maui and the Big Island, where ADRs in Q1 were 149% of pre-pandemic levels. Oahu achieved the greatest gain this year, going from a 2022 ADR of 102% of 2019 to 116%. Oahu still lags in the ADR rate boom due to the slow return of the Japanese market but appears to be slowly making up lost ground. 

Revenue Per Available Room

Statewide RevPAR grew to 124% of the 2019 level during Q1, from 107% in Q1 2022. Oahu’s RevPAR has finally surpassed pre-pandemic levels with RevPAR OF 109% of 2019. Oahu was the last island to recover in terms of RevPAR. Hawaii Island leads the RevPAR recovery with Q1 2023 equaling 144% of the pre-pandemic level, followed closely by Kauai at 138% and Maui at 133%.

Are we at a tipping point?

For the first time since the pandemic, we saw small declines in neighbor island RevPAR driven mostly by occupancy declines. This was just for the month of March and might be an anomoly. We expect to see Oahu recover relative to the neighbor islands as Japanese visitors trickle back and the neighbor island hotels try to keep the gains they’ve made over the last couple of years.

Hawaii Hotel Investment Market Activity

Properties still testing the market for a few months or more include the Hyatt Centric, sister properties Airport Honolulu / Best Western, the Pacific Marina Inn, the Hawaii Prince Waikiki, and the Kauai Beach Resort. Meanwhile, the DoubleTree Hilo is still in foreclosure. The hotel debt markets are making it tougher for sellers.