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The Hawaii hoteliers are not in ‘pink of health’. With a drop in the visitor’s arrival, they are struggling hard to survive. All hotel categories and locations are seeing a drop in the average daily room rate and revenue per available room. The state wide average daily hotel room rate fell for the 17th consecutive month to $161.08 causing the statewide revenue to fall another 10 percent.
According to the Hotel Consultancy Hospitality Advisors LLC, the revenue per available room, considered by many to be the best measure of hotel profitability, fell to an average of $101.64 a night, from $112.90 a year earlier. The results are in keeping with the 5.5 percent fall in Hawaii visitor’s arrival and 12.9 percent drop in visitor spending.
Keeping the matter of occupancy gains aside, Oahu hotels are reported to suffer a great setback in November from a 7.9 percent drop in average daily room rates, which fell to $144.11.
Hoteliers on Kauai and the Big Island saw occupancy rates fall below 50 percent in November 2009, while Maui hotels achieved only 58 percent occupancy. Kauai hoteliers saw revenue per available room fall to $89.89, a decrease of 22.1 percent - the largest in Hawaii. Nearly all hotel categories and locations saw a drop in the average daily room rate and revenue per available room.
Reports suggest that the occupancy is expected to post gains in 2010. According to hoteliers, they are confident enough to surpass the bad revenue collection of 2008 and 2009 in 2010. Both occupancy and spending is expected to increase in 2010.
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