Hawaii’s hotel industry is finally turning the corner after a trying 18 month period that saw occupancy and room rates plummet. RevPAR has declined 4.7% since the same period one year ago, while average daily rates (ADR) increased by 1.6% to help offset those losses.

In Q1, Hawaii RevPAR was down 59.5% while ADR was down 12.0%, signaling the worst hotel performance is behind us. Although RevPAR performance is lagging pre-pandemic numbers at $141.14, that exceeds the national average of $85.31.

Occupancy fell 320 bps to 48.1%, which is still lagging far behind the national average of 66.1%. This is largely due to Hawaii’s reliance on air travel, which is a deterrent to many travelers in light of the pandemic.