Year to Date 2025 Hotel Performance

Statewide hotel performance for the first eight 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 16% below 2022. Notably, occupancy gains on Hawaii Island and Kauai have been strong.

Luxury's Reign Continues!

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 14%. Smith Travel Research is reporting a similar positive trend for luxury hotels across the US. Luxury properties on Maui are up 19% year to date over last year.

August 2025 Hotel Performance

In August 2025, the statewide occupancy improved by half a percentage point with ADR flat compared to August 2024. Kauai posted a 4% gain in RevPAR while Hawaii Island was up 3%. Maui saw a 10% increase in room revenue but it was 25% less than 2022. (reflecting slow yet continued recovery post-wildfires). Waikiki had another down month in August with a 5% drop in RevPAR following a rough July (RevPAR down 7%).

Visitor Arrivals

Statewide, visitor arrivals decreased by 3% in August 2025 compared to the prior year. Oahu was down 4%, Kauai was up 3%, and Hawaii Island was down 3%. Maui up 3% compared to August last year, but arrivals remain 25% lower than pre-pandemic levels. Japanese arrivals were unchanged from August 2024 and are 48% below 2019 levels. Despite these declines, arrivals are still up 1% year-to-date; however, recent monthly data indicates a downward trend.

Visitor Expenditures

Visitor spending in August 2025 outperformed hotel performance metrics. Total expenditures were up 3%, while per person, per day was up 5%. Oahu spending was down 9% while Maui was up 23% compared to the challenging conditions following the wildfires last year. As usual Kauai (+15%) and Hawaii Island (+10%) fared well.

Current Air Capacity to Hawaii

Total air seat capacity to Hawaii fell 1% in August and is down 2% year-to-date relative to 2024. By island, air seat capacity was flat for Oahu, down 4% for Maui, down 8% for Kona while Kauai had a 5% increase. International air seats are down 5% year-to-date, with Japan, Canada and Oceania having strong declines of -8%, -10% 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 flat.

State of Hawaii  up 2%

Honolulu up 1%

Kahului up 3%

Kona up 3%

Lihue up 6%

Domestic  up 2%

International flat

Japan down 2%

Canada  down 10%

Oceania down 13%

Korea up 25%

Hotel Investment Conferences

We will be attending The Lodging Conference from October 6th ~ 8th at the JW Desert Ridge in Scottsdale AZ. We will be launching some of our recent listings and available to discuss other Hawaii hotel opportunities. We will also be participating in the 2025 AHICE Aloha Hotel Industry Conference and Exhibition in Honolulu on November 7 at the Prince Waikiki.

Data Source: Hawaii Tourism Authority & DBEDT

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