Hawaii’s Visitor Accommodations in Transition

Aloha HVCB Ohana,

The changing dynamic of Hawaii’s accommodations mix has become a major topic of discussion.

Hotels continue to dominate our lodging landscape and are enjoying record results. However, driven by consumer demand, alternative accommodations are gaining in popularity, most notably, condo-hotels, timeshare, fractional ownership, resort homes, vacation rentals, bed and breakfasts and cruise ships.

This transformation caters to increasingly experienced travelers who want more flexibility and variety in their lodging choices.

A September 2005 report* issued by the Hawaii Tourism Authority shows that the accommodations inventory statewide is anticipated to increase to 77,734 units by 2010, a net gain of 5,911 rooms over 2005 levels (not including cruise inventory).

The increase in rooms is expected to be primarily in new timeshare and resort condominium properties. It’s noteworthy that development of timeshare, currently
8 percent of Hawaii’s accommodations inventory, is being led by major hotel brands.

Concurrently, the hotel sector is seeing substantial reinvestment in renovation, redevelopment and repositioning of existing properties to meet the demands of a more upscale and divergent market segment.

These changes are a driving force in upgrading and diversifying Hawaii’s lodging product. Although a departure from the past visitor accommodation model, this evolution, if managed properly, is critical in our quest to remain competitive.

HVCB is monitoring this new lodging segmentation with a view to keeping our marketing on target.

Mahalo,

John Monahan
President/CEO

* “Analysis of Trends in Accommodations Supply, with Focus on Condominium and Timeshare Conversions (page 77).” Prepared by Hospitality Advisors LLC.