Hawai‘i vacation rental market: ADR was higher in July but vacation rental supply, demand and occupancy were lower

Vacation rentals across Hawai’i reported increases in supply, demand and average daily rate (ADR), with lower occupancy rate in July 2024 when compared to July 2023. In comparison to pre-pandemic July 2019, ADR was higher in July 2024 but vacation rental supply, demand and occupancy were lower.

In July 2024, the total monthly supply of statewide vacation rentals was 836,100 unit nights (+5.5% vs. 2023, -7.6% vs. 2019) and monthly demand was 459,900 unit nights (+1.1% vs. 2023, -34.7% vs. 2019). This combination resulted in an average monthly unit occupancy of 55.0 percent (-2.3 percentage points vs. 2023, -22.8 percentage points vs. 2019) for July. Occupancy for Hawai‘i’s hotels was 78.4 percent in July 2024.

The ADR for vacation rental units statewide in July was $334 (+9.8% vs. 2023, +61.0% vs. 2019). By comparison, the ADR for hotels was $385 in July 2024. It is important to note that unlike hotels, units in vacation rentals are not necessarily available year-round or each day of the month and often accommodate a larger number of guests than traditional hotel rooms.

The data in DBEDT’s Hawai‘i Vacation Rental Performance Report specifically excludes units reported in DBEDT’s Hawai‘i Hotel Performance Report and Hawai‘i Timeshare Quarterly Survey Report. A vacation rental is defined as the use of a rental house, condominium unit, private room in a private home, or shared room/space in a private home. This report does not determine or differentiate between units that are permitted or unpermitted. The legality of any given vacation rental unit is determined on a county basis.

Island Highlights

In July 2024, Maui County had the largest vacation rental supply at 266,400 available unit nights (+6.6% vs. 2023, -7.1% vs. 2019). Unit demand was 141,400 unit nights (-11.0% vs. 2023, -39.4% vs. 2019), resulting in 53.1 percent occupancy (-10.5 percentage points vs. 2023, -28.4 percentage points vs. 2019) and ADR at $388 (+8.2% vs. 2023, +64.8% vs. 2019). For July 2024, Maui County hotels reported ADR at $573 and occupancy of 60.5 percent.

O‘ahu vacation rental supply was 219,400 available unit nights (+3.5% vs. 2023, -26.5% vs. 2019). Unit demand was 144,300 unit nights (+9.2% vs. 2023, -39.8% vs. 2019), resulting in 65.8 percent occupancy (+3.4 percentage points vs. 2023, -14.5 percentage points vs. 2019) with ADR at $285 (+15.1% vs. 2023, +59.2% vs. 2019). In comparison, O‘ahu hotels reported ADR at $310 and occupancy of 88.3 percent for July 2024.

The island of Hawai‘i vacation rental supply was 214,500 available unit nights (+4.8% vs. 2023, +9.0% vs. 2019) in July. Unit demand was 98,300 unit nights (-0.4% vs. 2023,

-27.2% vs. 2019), resulting in 45.8 percent occupancy (-2.4 percentage points vs. 2023, -22.8 percentage points vs. 2019) with ADR at $268 (+13.3% vs. 2023, +64.3% vs. 2019). Hawai‘i Island hotels reported ADR at $436 and occupancy of 67.6 percent.

Kaua‘i had the fewest number of available vacation rental unit nights in July at 135,800 (+7.6% vs. 2023, +10.2% vs. 2019). Unit demand was 75,800 unit nights (+16.6% vs. 2023, -21.2% vs. 2019), resulting in 55.8 percent occupancy (+4.3 percentage points vs. 2023, -22.2 percentage points vs. 2019) with ADR at $410 (+6.0% vs. 2023, +51.3% vs. 2019). Kaua‘i hotels reported ADR at $453 and occupancy of 79.0 percent.

The article Hawai‘i vacation rental market: ADR was higher in July but vacation rental supply, demand and occupancy were lower first appeared in TravelDailyNews International.