Year-to-Date 2025 Hotel Performance......No Change

Statewide hotel performance for the first ten months of 2025 is flat in terms of occupancy and rate compared to the same period in 2024. Performance varies substantially by island and market segments. RevPAR increased by 7% on Hawaii Island and 3% on Kauai, while Oahu experienced a decline of 3% and Maui up 1%. Year-to-date hotel revenue for Maui is still 17% less than the same period in 2022.

Luxury Continues to Shine.....No Change

The luxury segment continues to outperform other classes, with RevPAR up 13% year-to-date compared to last year. In contrast, other market segments have declined, with upscale properties and upper midscale properties down around 13%. Smith Travel Research is reporting a similar positive trend for luxury hotels across the US. Luxury properties on Maui are up 18% year-to-date over last year.

October 2025 Hotel Performance...Some Positive Change...But Don't Celebrate Yet

In October 2025, the statewide occupancy improved by two and one-half percentage points with ADR flat compared to October 2024. Kauai posted a 5% gain in RevPAR while Hawaii Island was down 3% and Oahu was flat. Maui saw a 12% increase in room revenue compared to last year. Waikiki RevPAR was flat in October which is better than earlier this year.

Visitor Arrivals

Statewide, visitor arrivals decreased by 3% in October 2025 compared to the prior year. Oahu was up 1%, Kauai was up 10%, Hawaii Island was up 9% and Maui was down 1% compared to October last year. Japanese arrivals jumped 16% compared to October 2024. Year-to-date arrivals are the same as last year.

Visitor Expenditures

Visitor spending in October 2025 continues to outperform hotel performance and arrival metrics. Total expenditures were up 7%, while per person, per day spending was up 12%. Oahu spending was up 4% while Maui was up 11% compared to the challenging conditions following the wildfires last year. Kauai was up 16% and Hawaii Island was up 5%.

Current Air Capacity to Hawaii

Total air seat capacity to Hawaii was up 1% in October and is down 2% year-to-date relative to 2024. By island, air seat capacity was up 2% for Oahu, down 3% for Maui, down 4% for Kona while Kauai had a 6% increase. International air seats are down 4% year-to-date, with Japan, Canada and Oceania having strong declines of -7%, -9% and -7% respectively. Korea is up 8% YTD.

Air Seats Outlook

Looking ahead to the November through January period, total projected air seats are expected to increase 3% compared to the same period last year. Domestic seat capacity is up 3% while international capacity is also up 3%.

State of Hawaii  up 3%

Honolulu up 2%

Kahului up 6%

Kona up 8%

Lihue up 6%

Domestic  up 3%

International up 3%

Japan up 1%

Canada  down 8%

Oceania down 11%

Korea up 37%

Hotel Investment Market Activity

Powell & Aucello had a good month in November. We represented the seller for a 1.75-acre site in Kailua-Kona. Baywood Hotels plans to build a 101-room Residence Inn by Marriott on the site. Developers, fear not for missing out! Powell & Aucello is offering a four-acre parcel in Kailua-Kona entitled for 100 hotel rooms, commercial, residential or retail use.

The Hamakua Hotel Hits the Market

Powell & Aucello also launched the sale of the 8-room Hamakua Hotel, an oceanfront luxury boutique hotel nestled along Hawaii's stunning Hamakua Coast. 

Other Hotel Investment Market Happenings

The 48-room Kauai Inn is back on the market. It failed to sell in 2024 despite a strong Kauai visitor market, so the seller raised the price to $26 million ($542k/key), hired a residential broker and is giving it another go. I guess I didn't learn rational pricing theory in economics class.

The 64-room Manago Hotel on Hawaii Island is still on the market. Initially offered for $7.5 million in May 2024, they recently lowered their price to $5.75 million. A victory for rational pricing!

The Ewa Waikiki, the Shoreline and the Coconut Waikiki, as well as the Hyatt Regency Waikiki are still on the market. The owners of the Ewa Hotel overpaid for it and are now asking for more than they paid despite a weaker Waikiki market and higher cap rates. Was I sleeping during economics class?

The 9-room Paia Inn is in foreclosure. Michael Baskin’s antics have finally caught up with him. He’s been trying to sell his island-of-misfit-toys assemblage for too much money for many years. The sale is also hindered by the fact that the Paia Inn's hotel use permit expires in 2034.

Data Source: Hawaii Tourism Authority & DBEDT

1189 Waimanu Street, Suite 3302

Honolulu, HI 96814

(808) 466-3401

www.PowellAucello.com