August Rates Up, Occupancy Down

Aloha Kakou:

Maui's occupancy was down for August of 2011 compared to August, 2010, but ADR and RevPar were both up for the island during the month.

At least part of the success can be attributed to a strong Canadian visitor presence. August was the 14th month in a row where ADR exceeded that of the same month in the previous year.

http://www.mauinews.com/page/content.detail/id/554261.html
http://www.staradvertiser.com/businesspremium/20111011_Foreigners_had_hotels_humming_in_August.html?id=131501093

2012 Growth "Modest"

Aloha Kakou:

Modest growth for 2012 is the key takeaway from a study issued today by University of Hawaii economists.

Regarding housing prices, Maui condominium prices were down compared to 2010, with a $325,000 median price in July. That's about 16.7 percent less than the $390,000 price for the same month a year earlier.

Homes too suffered a decline in price in July, with the median price of $410,000 down from last July's $500,000.

It has been reported that almost 40% of all home sales in the 2nd quarter of 2011 were foreclosures.

http://mauinews.com/page/content.detail/id/553032/UH-economists-say--recovery-has-slowed--but-not-stopped-.html?nav=10

Maui July Occupancy Flat, Spending Up

Aloha Kakou:

July's island-wide occupancy was only 392 fewer than last year.

Additional airline seats and a strong Canadian dollar mean the number of visitors from "north of the border" increased significantly this year with arrivals up almost 18% compared to last year.

Maui visitors spent $177 per person per day in July, up from $164 last July.

http://mauinews.com/page/content.detail/id/552768/Canadians-support-isle-s-steady-visitor-numbers.html?nav=10

Maui's June Not Impressive

Aloha Kakou:

Despite a promising start to 2010, Maui's hotel occupancy began slowing in April. That slowdown continued through June.

Maui's June occupancy was only one percentage point higher than that of June, 2010, at 66.7%.

Rate gains for the first six months of 2011 may seem impressive but they're coming in comparison to the low, low rates of 2010. RevPAR for Maui was up 16.2% to $179 from $154.

http://mauinews.com/page/content.detail/id/552531/Occupancy-recovery-slows.html?nav=10

June Occupancy Decreases

Aloha Kakou:


Statewide occupancy decreased for the first time in a year and half during the month of June. June's occupancy rate of 70.7% was .7% lower than June of last year. Average Daily Rates (ADR) were up 9% compared to last June at $185.46.

Natural disasters and financial uncertainty seem to be causing potential guests to rethink a vacation to Hawaii,

http://www.staradvertiser.com/businesspremium/20110817_isle_hotel_occupancy_suffers_june_swoon.html

Maui's Unemployment State's Highest

Aloha Kakou:

Maui County's unemployment rate stands at 7.2%, the highest in the state. Still, that figure is a decline of 1% from the same time last year.

Maui island's unemployment rate is 7.1%, compared to the Hawaii in general at 5.9%.

http://mauinews.com/page/content.detail/id/550498/Maui-has-state-s-highest-unemployment-rate--but-it-has-fallen-over-the-past-year.html?nav=10

State, Island Rates & Occupancy Up

Aloha Kakou: Visitor industry metrics were up for the month ending March 23, with Maui’s 80.6 percent occupancy rate up 5.4 percentage points compared to the same week in 2010. Rates were also up on Maui; $266.39 was 14.6% higher than last year. http://www.bizjournals.com/pacific/news/2011/04/01/hawaii-hotels-see-more-guests-as-rates.html

Do You Want To Buy A Hotel?

Aloha Kakou: The Kapalua Ritz Carlton goes on the block in May as the result of foreclosure. I don't know how much of a deal you could get with $263 million outstanding debt. http://www.bizjournals.com/pacific/news/2011/03/28/ritz-carlton-in-kapalua-to-be-sold-at.html

Higher Cotton Prices Mean More Expense For Hotels

Aloha Kakou:

The recent dramatic increase in cotton prices mean that hotels pay more for sheets, towels and even pillows. And the current state of the economy means those prices are not being passed along to the consumer.

http://www.cnbc.com/id/15840232?play=1&video=3000007153

Maui January Numbers Up

Aloha Kakou:

Maui's January occupancy came in at 73.6%, up 6.7% from January, 2010.

The island's Average Daily Rate of $245.23 was also up 6.7% from January of last year.

Occupancy and revenue remain below their historic highs but have been moving upward from 2010's low numbers.

http://mauinews.com/page/content.detail/id/546941/Hotel-numbers-continue-gains-in-January.html?nav=10

Hawaii January Numbers Up But Not Enough

Aloha Kakou:

While occupancy and ADR for the state rose almost 10% in January compared to last year, those increases are not sufficient to return state hotels to profitability.

Price recovery for Hawaii's hotel industry is still another two or three years away.

"In the last few dollars of ADR lies almost all the profit," said Barry Wallace, executive vice president of hospitality services for Outrigger Enterprises. "The vast majority of ADR pays for employees and taxes. Profit is the final dollar or two, and that's the dollar that isn't there. Many Hawaii hoteliers can't pay the mortgage or are in some level of distress."

As a result, hoteliers will continue to feel squeezed, and visitors will continue to get great deals, he said.

"We can't pull back the specials because we are still using them to drive demand," Wallace said. "We are all still very cautious."

http://www.hotel-online.com/News/PR2011_1st/Mar11_HawaiiGains.html

Rising Cotton Prices May Mean Rate Increases

Aloha Kakou:

With the recent dramatic run-up in the price of commodities, can hotels maintain current rates as the price of basic elements like sheets and towels rises to record levels? Just another example of how interlinked we all are.

http://www.cnbc.com/id/41739087

Free Wi-fi, Discounted Rates To Attract 2011 Guests

Aloha Kakou:

In a recent TripAdvisor survey, 91% of hotels say they will offer complimentary wi-fi service in 2011. Over 60% of hotels are planning on using discounted rates to attract guests in 2011.

http://www.hotelsmag.com/MembersOnly/webNews/details.aspx?item=21784

December Occupancies Up At The Price Of Rate

Aloha Kakou:

December's statewide occupancies were higher than than those of 2009 but rates are still down.

Lowering rates attracted more guests in 2010 but those guests will be reluctant to return to the rates they paid in 2006 and 2007.

"The occupancy has returned to more normal levels, but the average rate is still down about 15 to 20 percent from the peak and costs have risen 5 to 10 percent," said David Carey, president and CEO of Outrigger Enterprises Group. "Hotels and their owners continue to be squeezed."

"We are still six years away from even achieving the profitability of 2006 and 2007," said Keith Vieira, senior vice president and director of operations for Starwood Hotels & Resorts in Hawaii and French Polynesia.

http://mauinews.com/page/content.detail/id/546141/Deals-help-raise-2010-Maui-occupancy-rates.html?nav=10





http://www.staradvertiser.com/business/20110214_Hotels_ended_2010_with_higher_rates_occupancy.html

Maui Visitor Numbers Up

Aloha Kakou:

The number of people visiting Maui increased nearly 19% this November as compared to last.

For the first eleven months of this year, the visitor count is up 10% compared to last year.

Maui visitor's spending has increased in 2010 by 36.7% (to $252.6 million) over 2009.

http://mauinews.com/page/content.detail/id/544457/Spending--visitor-numbers-up-across-state.html?nav=10

HTA Official: "We Have A Long Way To Go"

Aloha Kakou:

Please see the following statement from Mike McCartney, head of the Hawaii Tourism Authority, regarding November's occupancy and revenue results:

http://campaign.r20.constantcontact.com/render?llr=vtxwcgdab&v=001qNmFLvMdRPCZjxa1ZgAGSNsj0vWvgXBcsowCMiOw4el7LTMmc3G9BSoasDgqEEtwaFaPuCdkhNLH5kESCTfO2NRGzPAntvx0aOYbEDu0CfMLYFzzI6Kh-R2e4S7OxlYOJc2XhTZwB31O4TzWK6tlBb_xg-0FL4b7kS-EIYaculDjUoJAEM5VogUr0QRM2w7cLdquCioA3oq5_KDb36aaCcX6XhsvzZBgQa_vbUPtv18ZxuKVSkMrTsvJqPcDxxreNlrOd2M1p00AJSR4-G6-GemJTri4117qUWPE4Ttc5LAopnJOpi-jKbLLFgA-qQY2

State's ADR & Occupancy Up For November

Aloha Kakou:

While a return to previously high room rates and occupancies may yet be three to four years away, November's increase in both metrics is a step in the right direction.

November's statewide ADR was $168.81, a 3.9% increase over 2009. Occupancy was up 6.7% to 67.8% over last November.

Experts attribute the increase in occupancy to the lower rates.

http://www.hotel-online.com/News/PR2010_4th/Dec10_HawaiiUp.html

Visitors Are Returning But They Like The Lower Rates

Aloha Kakou:

Hawaii Tourism Authority yesterday released visitor numbers for October and the mood is mixed.

Maui arrivals were up 20% compared to October, 2009, and arrivals for the state were up 13.6%. Revenue for the month was also up to $961.5 million, up almost 25% from last October. For the first ten months of the year, revenue for the state is up almost 15%.

Lower hotel rates seem to be driving the boom, with guests looking for value.

"I love numbers like this; however, it's mainly a volume recovery," said David Carey, president and chief executive officer of Outrigger Enterprises Group. "Even with the increases, spending is still well below peak levels."

"We've got more people and that's good, but we've also got more expenses," Carey said. "Our margins are still being squeezed."

http://mauinews.com/page/content.detail/id/543485/-Cautious-optimism--for-tourism-industry.html?nav=10

http://www.staradvertiser.com/news/20101201_Tourism_rises_in_isles.html

August Best Month In A While

Aloha Kakou:

August was a good month for Hawaii's tourism business compared to the recent past, but we have a way to go to reach rates and occupancies of years like 2006 and 2007.

Maui had almost a 10% increase in visitors this August compared to August, 2009.

According to the Maui News, " On Maui, gains were substantial in every price category but especially so in the midprice and economy categories. Economy rooms, charging $115 a night, zoomed from 47.4 percent occupancy to 66.1 percent." Rate is still the driver of occupancy.

"We had busy months, and we're seeing volume being built back into the market but we're still well below our peak years," said Joseph Toy, Hospitality Advisors' president and chief executive officer.

http://mauinews.com/page/content.detail/id/541529/Maui-s-hotel-occupancy-up-considerably-in-August---firm.html?nav=10

http://www.staradvertiser.com/business/20101011_August_hotel_occupancy_up.html

August Spending, Occupancy Up

Aloha Kakou:

Maui saw 10.1% more visitors this August than in August, 2009.

Visitor spending increased a whopping 29.6% during the month compared to last year.

We still have a long way to go before we get back to pre-2008 levels; however, after six straight months of growth in visitor spending, businesses throughout the state are encouraged by the improvements in the visitor industry," said State Tourism Liaison Marsha Wienert.

http://mauinews.com/page/content.detail/id/541133/August-visitor-arrivals-up-10-percent-from--09.html?nav=10