In the past, we’ve pointed out some great opportunities to own Maui real estate, whether as a full-time residence or an income property. For those of you most interested in income property, our little island in the Pacific has shone brighter than the other major islands once again. They say Maui no ka oi, which means Maui is the best, but it’s especially gratifying when there’s statistical evidence to back it up.
According to a weekly report by Hospitality Advisors LLC and STR Inc., hotel occupancy fell on all major Hawaiian islands. That is, all except Maui, where occupancy increased by a small increment. While Oahu, the Big Island and Kauai all saw lower occupancy during the week of June 12 compared to the same week last year, Maui stood alone against the trend.
Occupancy fell by 2 percentage points statewide to 82.8 percent full. Oahu saw a drop of 2.9 percent to 88.8 percent. Big Island hotels saw a 3.9 percent decrease to 67.2 percent occupied, and Kauai saw a 2.1 percent drop to 74.5 percent occupied.
After Oahu, Maui had the highest occupancy, at 81 percent, with a gain of 0.6 percent compared to the same week in 2015. Oahu has traditionally held the highest occupancy rate because there are many more options in accommodations, some offering much cheaper rates than what you’ll find on Maui, and yet Maui’s occupancy is slowly edging closer and closer to Oahu’s occupancy rate.
To grasp how remarkable this trend is, just consider the hotel room rates of this same week of June 12. The average daily room rate on Oahu increased 1.8 percent to $232.30, while Maui’s increased by 4.6 percent to $314.90. By comparison, Big Island rates increased by 2.1 percent to $237.07 and Kauai room rates jumped 5.7 percent to $263.20.
Most of Hawaii’s visitors come from the U.S. West, followed by the U.S. East, which tells you something else about these numbers. Vacationers wouldn’t be flocking to Maui, the most expensive island to visit, if they were suffering financially. If that were the case, they would opt for an island with cheaper rates. Hopefully the recent years have improved for you as well, giving you the leverage you need for a Maui income property. Mahalo!