The ADR for vacation rental units statewide in December was $318 (-1.5% vs. 2022, +35.8% vs. 2019). By comparison, the ADR for hotels was $428 in December 2023. 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.
Vacation rentals across Hawaiʻi reported increases in supply and demand, with lower average daily rate (ADR) and occupancy in December 2023 when compared to December 2022. In comparison to pre-pandemic December 2019, ADR was higher in December 2023, but vacation rental supply, demand and occupancy were lower.
The State of Hawai‘i Department of Business, Economic Development & Tourism (DBEDT) issued the Hawai‘i Vacation Rental Performance Report for the month of December utilizing data compiled by Lighthouse Intelligence, Ltd.
In December 2023, the total monthly supply of statewide vacation rentals was 768,300 unit nights (+15.7% vs. 2022, -10.3% vs. 2019) and monthly demand was 410,800 unit nights (+6.8% vs. 2022, -36.4% vs. 2019) (Figures 1 and 2). This combination resulted in an average monthly unit occupancy of 53.5 percent (-4.5 percentage points vs. 2022, -21.9 percentage points vs. 2019) for December. Occupancy for Hawai‘i’s hotels was 72.2 percent in December 2023.
The data in DBEDT’s Hawai‘i Vacation Rental Performance Report specifically excludes units reported in Hawai‘i Tourism Authority’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 private home, or shared room/space in 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 December 2023, vacation rental units in Lahaina continued to be inactive due to the August 8 Maui wildfires. In December 2023, Maui County had the largest vacation rental supply at 233,300 available unit nights (+11.3% vs. 2022, -20.4% vs. 2019). Unit demand was 127,900 unit nights (-1.5% vs. 2022, -44.7% vs. 2019), resulting in 54.8 percent occupancy (-7.1 percentage points vs. 2022, -24.2 percentage points vs. 2019) and ADR at $394 (+0.8% vs. 2022, +41.6% vs. 2019). For December 2023, Maui County hotels reported ADR at $612 and occupancy of 68.7 percent.
O‘ahu vacation rental supply was 212,700 available unit nights in December (+12.7% vs. 2022, -10.4% vs. 2019). Unit demand was 117,600 unit nights (+6.9% vs. 2022, -34.6% vs. 2019), resulting in 55.3 percent occupancy (-3.0 percentage points vs. 2022, -20.4 percentage points vs. 2019) with ADR at $258 (+1.2% vs. 2022, +34.5% vs. 2019). In comparison, O‘ahu hotels reported ADR at $321 and occupancy of 75.5 percent for December 2023.
The island of Hawai‘i vacation rental supply was 194,000 available unit nights (+20.2% vs. 2022, -5.1% vs. 2019) in December. Unit demand was 100,500 unit nights (+10.8% vs. 2022, -31.6% vs. 2019), resulting in 51.8 percent occupancy (-4.4 percentage points vs. 2022, -20.1 percentage points vs. 2019) with ADR at $250 (-6.9% vs. 2022, +37.6% vs. 2019). Hawai‘i Island hotels reported ADR at $560 and occupancy of 67.7 percent.
Kaua‘i had the fewest number of available vacation rental unit nights in December at 128,300 (+22.8% vs. 2022, +5.2% vs. 2019). Unit demand was 64,900 unit nights (+19.4% vs. 2022, -26.0% vs. 2019), resulting in 50.5 percent occupancy (-1.4 percentage points vs. 2022, -21.3 percentage points vs. 2019) with ADR at $384 (-1.5% vs. 2022, +30.7% vs. 2019). Kaua‘i hotels reported ADR at $489 and occupancy of 67.3 percent.
Year End 2023
For the full year of 2023, Hawai‘i vacation rental supply was 8.8 million unit nights (+17.2% vs. 2022, -14.5% vs. 2019) and demand was 4.9 million unit nights (-0.7% vs. 2022,
-35.5% vs. 2019). The average daily unit rate for 2023 was $301 (+1.8% vs. 2022, +45.1% vs. 2019). Statewide vacation rental occupancy for 2023 was 55.9 percent (-15.3 percentage points vs. 2022, -24.6 percentage points vs. 2019). In comparison, statewide hotel ADR for 2023 was $378 and occupancy was 74.7 percent.
Theodore is the Co-Founder and Managing Editor of TravelDailyNews Media Network; his responsibilities include business development and planning for TravelDailyNews long-term opportunities.
