HONOLULU— During the first half of 2005, Hawaii’s hotel market outperformed the rest of the U.S. through its strong leisure travel demand and its decreasing supply of hotel rooms, according to a mid-year report by Ernst & Young LLP’s hospitality services group. During 2005’s first six months, the four major Hawaiian hotel markets of Oahu, the Big Island, Maui and Kauai averaged a 4.5% occupancy increase over the same period in 2004. During the same time frame comparison, ADR increased 6.8% in the markets. Comparatively, the rest of the U.S. only averaged a 2.9% occupancy rise and 4.8% ADR increase during the same time frame. Based on these statistics, Ernst & Young has predicted that Hawaii will continue to excel in 2006. Supporting that prediction is the fact that the local economy is performing well and that there was a projected 10% increase in tourist visits this past summer as compared to 2004’s summer. Furthermore, in Oahu, 1,500 rooms are slated to be converted into residential units, which could result in a net loss of hotel room supply in that market.
