Year to Date 2025 Hotel Performance

Statewide hotel performance for the first nine months of 2025 is slightly down compared to the same period in 2024 but performance varies substantially by island and market segments. Overall occupancy, average daily rate (ADR) and revenue per available room (RevPAR) are the same as 2024. RevPAR increased by 8% on Hawaii Island and 3% on Kauai, while Oahu experienced a decline of 3% and Maui was flat. Maui's room revenue for the year to date is 17% below 2022.

Be Nice to the One Percenters....Luxury is bringing the money into Hawaii

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.

September 2025 Hotel Performance

In September 2025, the statewide occupancy improved by half a percentage point with ADR flat compared to September 2024. Kauai posted a 7% gain in RevPAR while Hawaii Island was up 1%. Maui saw a 6% increase in room revenue compared to last year but it was 27% less than 2022 (reflecting a slow yet continued post-wildfire recovery). Waikiki had another down month in September with a 4% drop in RevPAR which is how it has been performing all year.

Visitor Arrivals

Statewide, visitor arrivals decreased by 3% in September 2025 compared to the prior year. Oahu was down 5%, Kauai was up 2%, and Hawaii Island was up 10%. Maui up 3% compared to September last year, but arrivals are 16% lower than 2022 levels. Japanese arrivals jumped 9% compared to September 2024. Arrivals are up less than 1% year-to-date.

Visitor Expenditures

Visitor spending in September 2025 continues to outperform hotel performance and arrival metrics. Total expenditures were up 8%, while per person, per day was up 11%. Oahu spending was up 6% while Maui was up 20% compared to the challenging conditions following the wildfires last year. Ironically Kauai was down 1% but Hawaii Island was up 5%.

Current Air Capacity to Hawaii

Total air seat capacity to Hawaii fell 1% again in September and is down 2% year-to-date relative to 2024. By island, air seat capacity was flat for Oahu, down 6% for Maui, down 6% for Kona while Kauai had a 11% increase. International air seats are down 4% year-to-date, with Japan, Canada and Oceania having strong declines of -8%, -9% and -6% respectively.

Air Seats Outlook

Looking ahead to the October through December 2025 period, total projected air seats are expected to increase 2% compared to the same period last year. Domestic seat capacity is up 2% while international capacity is up 1%.

State of Hawaii  up 2%

Honolulu up 1%

Kahului up 3%

Kona up 3%

Lihue up 6%

Domestic  up 2%

International up 1%

Japan down 1%

Canada  down 10%

Oceania down 12%

Korea up 25%

Hotel Investment Conferences

We attended The Lodging Conference from October 6th ~ 8th at the JW Desert Ridge in Scottsdale AZ. Some of the conference takeaways were:

• 2025 hotel performance fell short with weak ADR and RevPAR growth and higher expenses.
• A limited pipeline of new hotel supply may help stabilize performance of existing assets.
• There were hopes for improved hotel valuations as interest rates decline.
• Renovation and repositioning of existing hotels have become more prominent.
• Luxury and wellness travel continues to grow.
• New outdoor/lifestyle brands were launched.

We will be participating in the 2025 AHICE Aloha Hotel Industry Conference and Exhibition in Honolulu on November 7 at the Prince Waikiki. Click here for more info: AHICE Aloha

Data Source: Hawaii Tourism Authority & DBEDT

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