Hawaii hotel blues

Occupancy fell 5.1 percent as Hawaii hotels recorded their lowest occupancy since 1987, according to a Hospitality Advisors LLC report. As the current market downturn continues, Hawaii’s average daily room rate dropped 9.3 percent to $179.

“The market losses are expected to continue through 2009 given the substantial challenges facing the travel industry, both in Hawaii and nationally,” says Joseph Toy, president of Hospitality Advisors.

Oahu posted the smallest occupancy loss of 1.3 percentage points to 70.6 percent, representing the highest occupancy of all islands. The Big Island’s occupancy dropped 4.4 percent to 54.9 percent.

Occupancy at luxury hotels experienced a sharp drop to 65 percent while average room rates fell to $255.