Prospective Maui real estate buyers who intend to use their investment as a vacation rental may be interested to know about how the island’s hotels performed in December. Hospitality Advisors LLC and STR Inc. recently released a report on hotel performance throughout the state, which revealed some interesting changes.
Statewide, Hawaii hotel occupancy increased 4.6 percentage points to 79.1 percent in December, compared to the same month last year, while average daily rates increased by 2.1 percent to $286.07. All the major islands saw an increase in occupancy, and all saw an increase in average daily rates except for the Big Island.
Maui hotel room rates were by far the highest, as always, because visitors will pay more for the experience of visiting the island. The average nightly rate for a Maui hotel was no less than $398.04, which was up 2.7 percent compared to the same month in 2014. Despite the cost, hotels were 72.9 percent full in December, which was up half a percentage point. Oahu was the only island with a higher occupancy.
For comparison, let’s look at Oahu, where Honolulu is located. Occupancy was up 6 percentage points to 87.2 percent and room rates were up 3.3 percent to $246.10. As the most heavily populated island with the broadest range of prices, it is typical for Oahu hotels to be cheaper on average, and more full.
Now for a look at Kauai and the Big Island. Kauai rates were up 6.1 percent to $283.66, which is over $100 cheaper than Maui’s average, and yet Kauai’s occupancy was up 4.1 percent to just 68.1 percent compared to Maui’s 72.9 percent. The Big Island saw a 0.6 percent decrease in average room rates, which settled at $285.68. Occupancy was up 6.4 percent to 64.9 percent full. Maui hotels are much more expensive than what visitors find on Kauai and the Big Island, yet they were much more full in December. That says a lot about the U.S. economy, considering that the vast majority of our visitors come from the Mainland.
If guests are willing to spend more for a Maui vacation, the ripples are certainly influencing the real estate market as savvy investors take advantage of these trends. If you’re interested in assistance finding the right Maui real estate investment for your needs, you’ll find our contact information at the bottom of the page. We would be happy to put our expertise to work for you.
