Maui Hotel Room Rates and Occupancy Up - Sakamoto Properties

Maui Hotel Room Rates and Occupancy Up

Home » Maui Real Estate Market » Maui Hotel Room Rates and Occupancy Up
February 3, 2017

Maui leads the charge again in hotel room rate gains, with a modest gain in occupancy. Based on a report from Hospitality Advisors LLC and STR weekly, the state’s hotel room rates spiked 9 percent in the week that ended on January 21st. Much of this increase was owed to Maui’s rate increases, which should be of interest to anyone considering a Maui real estate purchase for potential use as a vacation rental property.

Maui’s hotel room rates increased 13.1 percent, while Oahu’s increased by 9, the Big Island’s decreased by 0.1 percent, and Kauai’s rate increased by 7.9 percent. Now factor in the average daily room rates, and the picture becomes clearer. Maui’s is always the highest of the main islands in Hawaii. For the week in question, Maui’s room rates increased to a $336.34 per night average. Oahu’s rate increased to $240.22 by comparison. Meanwhile, the Big Island rate decreased to $254.87, and Kauai’s rate increased to $283.07.

Maui vacation rentals and hotels charge more on average than do those on the other islands, simply because vacationers are willing to pay more for a better vacation, and Maui is the favorite. It boasts more miles of beach than any other island in Hawaii, its eastern jungles are vast and full of cascading waterfalls, its towering mountains add majesty to the already vibrant scenery, and visitors find the robust mix of outdoor activities and indoor attractions to be nicely balanced.

Another noteworthy aspect of the report was that all the islands enjoyed hotel room occupancy over 80 percent for a statewide increase of 1.2 percentage points to a total of 85.5 percent. There were gains on all islands but Oahu, which typically has the highest occupancy rate, with minimal fluctuations. Maui occupancy increased 1.1 percent to 81.4 percent, Oahu’s dropped 0.3 percent to 87 percent, the Big Island’s increased 4.2 percent to 84.9 percent, and Kauai’s occupancy was up 5.9 percent to 87.5 percent.

Given the lower room rates on Maui’s neighboring islands, their marginally higher occupancy is expected. In fact, Maui’s visitor industry officials encourage higher prices as a way to limit the number of guests to a smaller, more exclusive group. Also, it may be worth noting that this report is based on 71.5 percent of the states total hotel room inventory, which includes about 100 properties and 40,744 rooms. The remaining 28.5 percent may have changed the numbers, but only a bit. It’s always worth knowing how precise your data is, so that you can make the most informed decisions possible when it comes to your investments.

On that note, if you need our assistance with your Maui real estate investment, you’ll find our contact information at the bottom of the page. We look forward to assisting you through every step of the process. Mahalo!

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