Hotel slide gets deeper in troubled paradise
Deep discounting and unprecedented initiatives have not helped further hotel occupancy slides in Hawaii to new lows.
Only half of the rooms on the Big Island were booked in May, according to a report by Hospitality Advisors LLC.
Hotel occupancy fell 6.9 percent to 62 percent in May, making it the worst month on record since the company began its monthly surveys in 1987.
"While we will see some seasonal lift in occupancy during our summer season, it will likely be marginal at best given the lack of momentum in the market," Joseph Toy president and chief executive officer of Hospitality Advisors said in a statement.
It’s unlikely Hawaii will see any sign of recovery until well into 2010 with room revenues continuing to lag the prior year by over 20 percent, he added.
Every island saw sharp declines, with bookings on the Big Island plummeting 8.2 percentage points to a statewide low of 49.3 percent.
Oahu posted the smallest occupancy loss of 3.6 percentage points to 69.2 percent, representing the highest occupancy of all islands. Oahu also had the lowest average daily room rate of $146 due to a wide range of room rates.
Maui had the highest rate at $210.48 with an occupancy rate of 55.9 percent.
The average daily rate also fell 12.8 percent to $166.
The hotel survey was compiled by Smith Travel Research in conjunction with Hospitality Advisors.
Report by David Wilkening
David
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