Hawaii Hotels Bring in Record Revenues

More positive news on hotels in Hawaii:

 

http://www.khon2.com/2013/05/12/hawaii-hotels-bring-in-record-revenues/

By Linda Dela Cruz

Updated: Sunday, May 12, 2013,

 

It’s been a good year so far for Hawaii’s tourism industry.

In fact, statewide hotel revenues which include room sales, food and beverage, retail, and parking set a new first quarter record of $1.43 billion.

That’s up almost 15 percent from the old record set last year.

Hawaii led the nation with highest average daily rate for the first quarter of 2013 beating places like New York City and San Francisco.

As for occupancy rates Oahu hotels led the state followed by Maui, Kauai, and the Big Island.

Hawaii Hotel Room Rates Rise 13%

http://www.bizjournals.com/pacific/blog/morning_call/2013/02/hawaii-hotels-90-full-room-rates.html?ana=e_lulu_rdup&s=newsletter&ed=2013-02-22&u=vwaD3Nm8EIP9ndk6IKCXpuwKdMo

February 22, 2013
 
of Pacific Business News

Hawaii hotels were 89.7 percent full last week, 2.3 percentage points higher than the same week in 2012 and the statewide average daily room rate rose nearly 13 percent to $235.52, according to a report from Hospitality Advisors LLC and Smith Travel Research.

Oahu had the highest increase in room rates during the week of Feb. 10-16, with the average daily rate rising 20.2 percent to $216.03. Occupancy, however, decreased by 0.3 percentage points, but Oahu hotels were still nearly full at 92 percent occupancy.

Kauai hotels' average daily room rate increased by 16.7 percent to $235.12, and occupancy increased 8.7 percentage points to 89.4 percent.

Big Island hotels also had a strong increase in occupancy, when compared to the same week last year, rising by 7.4 percentage points to 84.8 percent occupancy. The average daily room rate at Big Island hotels increased 2 percent to $213.95.

Maui hotels' average daily room rate increased by 5.2 percent to $290.17, and occupancy increased by 2.3 percentage points to 88.1 percent occupancy.

JAL Puts Narita Flight Back On

Japan airlines is already adding back airline seat capacity to Hawaii due to demand for our beautiful state.
Click below for more details.

Japan Airlines will restore a daily flight between Narita and Honolulu on Monday just in time for the Golden Week string of Japanese holidays.

JAL, which typically flies six daily flights to Honolulu — three from Narita, and one each from Haneda, Kansai International Airport in Osaka, and Nagoya — dropped one of its Narita flights on April 6 after the March 11 earthquake and tsunami.

That flight will resume on Monday and continue to operate for most of May. Golden Week runs from April 29 through May 5.

Honolulu’s Rail ready to break ground and add new jobs


This is exactly what our economy needs here on Oahu…. Job Growth. This first phase of almost 500 million in construction spending will directly effect occupancy rates of all of our commercial real estate projects. Expect vacancy rates to edge downward. Click below for more details.

http://www.staradvertiser.com/news/20110212_rail_ready_to_break_ground.html

After decades of debate and planning, the first shovels of dirt will be turned over to make way for Honolulu’s rail transit system on Feb. 22.
The pivotal groundbreaking ceremony for the 20-mile, $5.5 billion system will be open to the public at 10 a.m. along Kualakai Parkway, otherwise known as North-South Road, in Kapolei.
"Many people have waited so long and worked hard to finally get to this point," Mayor Peter Carlisle said in a statement. "This project will provide thousands of jobs for our local work force, relieve traffic congestion and pave the way for an exciting and better future for Oahu residents."

Hawaii Condos – Moana Vista Project

Image

The Moana Vista was a partially constructed and failed condo project. This development was up to approximately the 20th Floor when constuction was halted. Reportedly, the developer had $65 Million dollars invetsed.  Oliver McMillan, a high rise developer, purchased the project for $36 million and is poised to restart constcution.

Hawaii has a high percentage of multi-family properties that are eventually converted to condominiums.

2010- The Year of Transition for Hawaii Commercial Real Estate

With the release of the Investment Market Report from Colliers Hawaii, both the Honolulu Star Bulletin and the Honolulu Advertiser have posted articles with a brief summary and overview of the Report.

A year of transition: They believe multifamily and retail sectors will recover this year,  industrial by the beginning of the next year, office won’t see an improvement until 2011 and it could be as late as 2012 before problems in the hotel sector abate.

Hawaii Hotels: There are currently four Hawaii hotels for sale, and 11 that are distressed or in foreclosure, including the Ilikai, the former W Honolulu Diamond Head, Maui Prince, Fairmont Orchid, ResortQuest Kauai and the Hilton Kauai.

Commercial property sales: Sales have been consistently falling since the market’s peak in 2005, at $4.3 Billion.  Last year, it slowed to almost a trickle at $627 million.

To view the full articles, please visit:

Honolulu Advertiser – Commercial property sales fall 20%

Honolulu Star Bulletin – Isle’s real estate is still in distress

If you would like to receive a copy of the various market reports as they become available, please send an email with your contact information here.

Airlines’ plans huge boost for Isle Tourism

http://tiny.cc/Ri1ZD

By Rick Daysog
Advertiser Staff WriterAirlines

Carriers will have capacity to bring nearly 500,000 more passengers next year

At a time when many U.S. airlines are cutting back capacity to Mainland destinations, carriers plan to increase flights to Hawai’i.

During the past several months, half a dozen airlines serving Hawai’i have announced that they are adding about 60 regularly scheduled flights a week to the Islands, some from markets as far away as Charlotte, N.C., and Detroit.

According to a recent study by the Hawai’i Visitors and Convention Bureau, the nation’s airline industry plans to add more than 497,000 more passenger seats to Hawai’i in 2010. The additional capacity represents about a month’s worth of airline capacity, said HVCB CEO John Monahan.

The increase is good news for the local travel industry, which saw a 15 percent decline in capacity after last year’s twin shutdowns of Aloha Airlines and ATA Airlines, the global financial crisis and soaring fuel prices.

“The amount of new service started this year or that has been announced for next year is huge,” said state Tourism Liaison Marsha Wienert.

“That tells you that the airlines have confidence in Hawai’i as a destination.”

Hawaiian Airlines is adding the most capacity with the delivery of its new, long-range Airbus A330-200 aircraft in April.

The state’s largest airline plans to add 21 weekly flights, including daily flights to Maui from Oakland, Calif. and San Diego as well as a daily Los Angeles-to-Honolulu flight.

The new Airbus jets are part of the local carrier’s plan to spend as much as $4.4 billion over 15 years to acquire up to 24 new long-range aircraft.

Over the longer term, Hawaiian’s new Airbus jets gives it the capability to fly direct flights out of New York and other Atlantic coast cities, making it easier to market Hawai’i tourism to new East Coast markets, said David Uchiyama, marketing director for the Hawai’i Tourism Authority.

UPGRADES IN EAST

U.S. Airways has already started up its own East Coast connection.

The Phoenix-based airline last week launched daily nonstop service from Charlotte, N.C., augmenting the company’s existing Hawai’i service from its Phoenix hub.

Meanwhile, Delta Air Lines has said it will resume direct flights to Honolulu from Detroit starting in June.

The Atlanta-based carrier, which stopped flying directly from Detroit in 2004, will operate three flights a week from the Motor City, which will make it easier for travelers from the Eastern seaboard to travel to the Isles.

To be sure, most of the growth will come from West Coast markets, especially those once served by Aloha and ATA.

CAPACITY STILL OFF

Alaska Airlines, which only began daily flights to Hawai’i two years ago, said it plans to add 14 flights a week to the Islands from California, making Hawai’i one of the airline’s largest markets. Last month, the carrier began flying direct flights to Kona from a former Aloha and ATA stronghold, Oakland, Calif.

As a result of the expansion, about 11 percent of the carrier’s capacity will serve the Hawai’i market.

Continental Airlines plans to beef up service from other former Aloha and ATA routes. Starting in March, the airline said it plans to fly four times a week to Maui from Orange County, Calif.

It also plans to increase the frequency of its Orange County to Honolulu flights from four days a week to seven days a week.

David Carey, CEO of Outrigger Enterprises Inc., estimates that the overall airline capacity is still off about 5.5 percent from its pre-Aloha and ATA days. But he said that’s much better than other Mainland markets where airlines have cut back as much as 20 to 30 percent.

“We’re still still down several percent but anything showing positive growth going forward is good news,” he said.

ONLY NEWS WAS BAD

The increased passenger lift represents a sharp reversal from early 2008 when Hawai’i's travel industry was struggling to persuade Mainland carriers to help fill the void created by the shutdowns of Aloha and ATA.

Many of the carriers were reluctant to increase capacity due to soaring fuel prices and the global economic meltdown.

What’s more, some eastbound carriers such as Korean Air Lines had planned to expand their service to Hawai’i but later reconsidered after bookings tailed off as a result of fears of the H1N1 flu.

“It was one thing after another. First you get hit with fallout from the airlines, then it was the jump in oil prices, then you get hit with the financial crisis and then the H1N1 fears,” Uchiyama said.

“Talk about getting beaten up.”

West Oahu building sells for $19M

A local family has purchased a 189,000-square-foot cold/freezer food distribution building in West Oahu’s Campbell Industrial Park.

The building at 91-315 Hanua St., which is occupied by a single tenant, C&S Wholesale Grocers, was purchased by KDI Investments Inc. for $19 million, according to Colliers International, which handled the sale along with the Los Angeles office of Colliers International. KDI Investments is owned by siblings Malcom Tom, Kenton Tom and Joanna Leong, who also own the Wailana Coffee House in Waikiki.

The seller was Tower Plaza Associates LP, which bought the building in 2006 for $18.75 million from Pacific Warehouse Inc., a related company of Foodland Super Market Ltd.

“The buyer stepped up and purchased the property at this opportune time because of the high rates of return with an in-place credit tenant,” said Mark Bratton, the senior vice president at Colliers International who represented the seller along with Executive Vice President Scott Mitchell. “Considering the eventual upswing in the market cycle, investors will not see this type of return three to five years from now. This is impeccable timing.”

Macadamia orchard sold on the Big Island

A 736-acre macadamia nut orchard in Keaau on the Big Island has been sold to Geyser Keaau Hawaii LLC, a unit of California-based Geyser Holdings, for undisclosed terms.

Geyser is not getting into farming per se, said Mark Bratton, a vice president at Colliers International.

“With an in-place farming and nut purchase contract, this is a great asset requiring minimal site management by the new owner,” he said in a statement.

Mauna Loa Macadamia Nut Co., a subsidiary of the Hershey Co., will buy the orchard’s output.

It is a “net lease deal” in which the property is leased by an operator and Geyser will be collecting rent, which “goes up a bit” every two years, Bratton said.

The orchard was sold by Keaau Macadamia Land LP and Roland and Eleanor Herberg of San Diego for estate planning reasons, Bratton said.

The purchase expands Geyser’s portfolio of commercial real estate, primarily in resort retail and hospitality, to more than $400 million.

Its Hawaii holdings include Poipu Shopping Village on Kauai and an interest in King Kamehameha’s Kona Beach Hotel on the Big Island.

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