Hawaii hotels rake in record revenue
A new report released by Hospitality Advisors LLC says May was a record month in terms of hotel revenue.
$390 million was taken in by Hawaii hotels and resorts. The reasons for the record revenue were strong room demand and higher rates.
There are some in the industry that are concerned about the higher hotel rates that have helped fuel the record revenue. The average rate for a hotel room in Hawaii in May climbed nearly 4 percent to $218.
“Good for them, they’re getting the money at this time but hopefully we don’t price ourselves out of the market that’s one of the challenges. I feel you can get the money today but we do not want to give people the impression that Hawaii is too expensive,” says Hawaii Pacific University Professor Jerry Agrusa.
The average room rate for the year from January 1 through May 31 was $241.
On Oahu, occupancy rates are flat and visitor stays are shorter. A significant part of the gains come from higher rates and attracting so called higher yielding visitors such as wedding and honeymoon visitors along with business and convention travelers.
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