Interesting article on why many hotels are on the market or have investors chasing after them. The net operating income and the revenue per room are increasing at a rapid rate. Read on for the article:
By: Stephanie Silverstein, Reporter- Pacific Business News
Occupancy at Hawaii hotels decreased slightly last week, when compared to the same week last year, while the statewide average daily room rate increased by 11.1 percent to $222.69, according to the latest report from Hospitality Advisors LLC and Smith Travel Research.
Statewide hotel occupancy was 76.2 percent for the week of June 9-15, a decrease of 0.8 percentage points compared to the same week in 2012.
Average daily room rates increased year-over-year on all of the major islands except the Big Island, where the average daily rate declined by 1 percent to $189.64. Occupancy at Big Island hotels, however, increased by 1.8 percentage points to 59.4 percent, which was still the lowest occupancy rate of the major islands.
Kauai had the biggest decrease in hotel occupancy compared to the same week last year, declining 7 percentage points to 65.4 percent. Average daily room rates, however, increased by 5.2 percent to $226.87.
Hotels on Maui experienced increases in occupancy as well as average daily room rates last week. Occupancy increased by 1.3 percentage points to 74.4 percent, and average daily room rates rose by 10.5 percent to $271.73.
On Oahu, average daily room rates increased by 14.6 percent to $207.87 while occupancy decreased by 1.6 percentage points to 83.6 percent.