Business Report 3/7/16: Illustrated Economics Hotel Revenue - Hawaii News Now - KGMB and KHNL

Business Report 3/7/16: Illustrated Economics Hotel Revenue

(Image: Hawaii News Now) (Image: Hawaii News Now)
HONOLULU (HawaiiNewsNow) -

How much revenue can one hotel room bring in one year? The answer is well over $50,000, according to new statistics from Hospitality Advisors.

Joe Toy and the gang worked out revpar revenue per available room for full year 2015. That means revenue from rooms that were filled is stretched out to include rooms not filled.

Annual revenue per room last year was more than $55,000 on the Big Island. Up 8.2%
Kauai: $63,000. Up 8.5%.
Oahu: $68,000. Up 4.1%.
On Maui: closer to $86,000. Up 9.7%.

This is room revenue, not revenue from restaurants or spa services or store rents. And this is a curious factor, but the lower the occupancy, the lower the cost, since empty rooms need less service than occupied rooms do.

Copyright 2016 Hawaii News Now. All rights reserved.

Powered by Frankly