06/18/2024
Vacation rentals were half full in April.
From Pacific Business News: Vacation rental occupancy for units statewide dropped 22 percentage points to 51% in April compared to April 2019, when the occupancy rate was 73%, according to the most recent data by the Hawaii Tourism Authority and the state Department of Business, Economic Development & Tourism.
According to the monthly Hawaii Vacation Rental Performance Report, occupancy was also down 5 percentage points compared to last year, when units were 57% occupied.
Unit supply dipped 3% from 2019, to 823,150 unit nights in April, and demand fell 32% to 423,300 unit nights. Compared to last year, however, both categories reported increases, with unit supply jumping 11% and demand up 1%.
Average daily rate, or ADR, increased 53% from $205 in April 2019 to $312 in April 2024. However, it’s worth noting that according to the Bureau of Labor Statistics’ inflation calculator, $205 in April 2019 is worth the equivalent of nearly $252 in April 2024 dollars.
According to the report, ADR jumped 2% compared to April 2023, when it had been $307. However, the online inflation calculator says that $307 in April 2023 is the equivalent of $317 in April 2024.
For comparison, hotels were 72% occupied in April and had an ADR of $368.
The report defines vacation rentals as “the use of a rental house, condominium unit, private room in a private home, or shared room/space in a private home,” but does not differentiate between permitted and unpermitted properties.
The report utilizes data compiled by Lighthouse Intelligence, Ltd. and is based on properties that are listed on Airbnb, Booking.com and HomeAway. This month’s report includes data for 34,027 units and 58,284 bedrooms.
The report also features island-by-island data, and all four islands reported declines in occupancy compared to 2019, with Kauai reporting the largest drop of 27 percentage points to 52%. Hawaii Island had the lowest occupancy overall of just 45%.
However, Hawaii Island also had the largest increase in ADR for the month compared to April 2019, up 56% to $253. But it was Kauai that had the highest overall ADR of $382, followed closely by Maui County with an ADR of $377.
Looking at the island-specific data compared to last year, all four islands experienced drops in occupancy, with Maui reporting the biggest loss of 10 percentage points. As for year-over-year ADR, Oahu, Maui County and Hawaii Island reported nominal increases, while Kauai remained mostly flat.
Occupancy year-to-date fell 27 percentage points from 2019 to 57% for the first four months of the year. ADR grew 55% to $330.
Looking at year-to-date figures compared to last year, the occupancy rate fell 8 percentage points and ADR grew 2% from the same period in 2023.