Maui’s performance in the visitor industry continues to lead the islands, stimulate the economy and bring in new prospective home owners. Although Maui real estate inventory is shrinking, growth in visitor spending and arrivals from both the U.S. West and East is factoring into more Americans who are able to buy Maui real estate.
According to a recent report from Hospitality Advisors LLC and STR Inc., Hawaii hotel rates were up 3 percent in the week ending August 1st, despite an occupancy drop on Oahu. That’s because occupancy increased on Maui, the Big Island and Kauai.
Occupancy was 83.6 percent statewide that week, which was down just 1 percent since the same week last year. The average daily hotel room rate was $263.83, which was up 2.9 percent compared to the same week last year. Maui’s occupancy was up 4.6 percent to 83.8 percent, putting it above the state average, which is uncommon. Maui’s strategy has always involved higher cost of accommodations with lower occupancy, paving the way for a more exclusive experience. Given its performance in the visitor industry lately, it’s clear that more visitors are willing and able to pay more for a vacation with more luxuries. The average daily room rate on Maui was up 5.7 percent to $335.83, which is far higher than the statewide average we mentioned above. That should help put our high occupancy rate in perspective.
Compare Maui’s statistics to the other islands for reference. Oahu occupancy was down 4.7 percent to 87.5, but with a daily room rate that was up 0.7 percent to just $237.12. That’s a hundred dollars cheaper a night on average, with a comparable occupancy rate. Meanwhile, Kauai occupancy was up 1.6 percent to just 77.6 percent and daily rates increased 6.2 percent. The Big Island’s occupancy was up 2.5 percent to just 71.9 percent, and average daily rates were up 0.6 percent to $239.53.
When it comes to the visitor industry, Maui is the big earner of Hawaii, based on both occupancy and average daily room rates. For even more scope, the national hotel occupancy rate was 77.5 percent that week, which was up 1.1 percent since the same week last year. While the average daily room rate was $124, up 4.6 percent year-over-year.
These statistics are the reason why you will often read about Maui real estate owners using their properties as vacation rental homes as a way to earn extra cash on their investments. If you’re thinking about a real estate purchase, keep in mind that interest rates are expected to increase in the future. On that note, there’s no time like the present for buying real estate. If you need assistance finding the right property for your specifications, you’ll find our contact information at the bottom of the page. Mahalo, and we look forward to hearing from you!