Hawaii Hotel Performance is Great, Except for Oahu ●     Statewide RevPAR exceeded 2019 levels, due to the neighbor islands’ US-market driven occupancy recovery and robust ADR growth ●   The neighbor island RevPAR’s were up between 24.1% and 43.9% for the month of June over 2019. ●     Maui County’s ADR is approaching $500, up 26.3% over 2019 ●     Oahu lags again, due to the lack of international visitors. Oahu usually has the highest occupancy but is now the lowest. Oahu ADR is down as hotels compete on price for market share Visitor Arrivals are Great, Except for Oahu Daily visitor arrivals were about 87% of pre-pandemic levels through July 29. Hawaii is seeing record-setting numbers of US visitors but is missing out on international visitors. As a result, the neighbor islands are doing well while Oahu is still trailing relative to 2019. Erik Kloninger's graph tells the story. More Air Seats Planned The current HTA three-month air seat analysis shows July, August, September seats are down about 1.7% compared to 2019 levels. US carriers have added seats into Hawaii, while international carriers continue to operate with drastically reduced capacity due to restrictions on international travel. Air Canada and WestJet are scheduled to add some seats from Vancouver in both August and September, while Korean Air will be adding seats from Seoul and Tokyo in September. The Biden administration’s travel ban extension will, unfortunately, prohibit Canadian visitors until at least August 21st.   Takeaways from the ALIS Hotel Investment Conference Few opportunities for acquisitions Sellers have unrealistic pricing expectations Rapid spread of the Delta variant will push the return of group business to the spring Hotel owners and managers are concerned about ramping up staffing levels, escalating costs, and other labor challenges Inflation will likely push the date of "real" 2019 rate parity beyond 2024 Other Hawaii Hotel Investment News The lender to the Coco Palms property on Kauai made a credit bid of $22 million and is positioned to take ownership of the property following an upcoming confirmation hearing. This could lead to the redevelopment of the property. Marriott’s Renaissance brand will adorn the hotel portion of the Sky Ala Moana project. We also hear that one of the larger and relatively unrepresented brands in Waikiki will be putting two of their flags on a large, independent Waikiki hotel. June's Survey Results We asked our readers about what they’d pay for hotels now. Two-thirds said they would expect to pay less than 2019 prices.

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