Higher room rates and higher occupancy led to a 30 percent increase in revenue over the six-day period in which the Asia-Pacific Economic Cooperation gathering brought together 21 world leaders along with top government and business officials in Honolulu.
Waikiki hotels generated total estimated revenues of $37.7 million between Nov. 7 and 12, an increase of $8.7 million over the same period a year ago, according to a report by Hospitality Advisors and Smith Travel Research. The estimate is of hotel revenue only and does not include other spending generated by APEC, such as event setup, ground transportation or retail spending.
"We definitely saw a lift," said Joseph Toy, president and chief executive officer of Hospitality Advisors. "We’re only looking at a small segment of the (APEC) impact. This is a small piece of it, but it does indicate some of the impact in at least one part of the puzzle."
The average occupancy rate in Waikiki hotels for the six-day period was 82.3 percent, about 1.3 percentage points higher than the same period a year ago, although the occupancy rate increased each day Tuesday through Friday, peaking at 87.3 percent on Friday night, according to the report.
Occupancy rose despite an increase in the average daily room rate to $202.79 per night for the six days, about 28 percent higher than the average daily rate of $158.40 for the same period a year ago.
The rise in rates boosted revenue per available room, a key industry measure of profitability, to $166.82 for the six-day period, compared with $128.27 for the same period in 2010, a 30 percent rise. The peak came on Thursday, when the average daily rate of $215.12 boosted revenue per available room by 53 percent to $187.10.
By comparison, the occupancy rate for all hotels statewide was 74.5 percent in September, the most recent month available. The statewide average daily room rate for the month was $172.20, and the revenue per available room was $128.60.
Toy said the revenue generated from the six days of APEC was equal to about 28 percent of a typical month’s entire collection.
"It’s created a bigger chunk of revenue for that small period of time," he said.
Mufi Hannemann, president of the Hawaii Hotel & Lodging Association, said the response he received in speaking to managers and even delegates was one of "wholesale happiness all around."
"I think we hit a home run from the lodging side," the former Honolulu mayor said. "Very few, if any, complaints about the accommodations at the hotels — everything from the quality of the rooms to the spirit of aloha and the volunteers that were an integral part of it."
If there was a negative aspect to the conference, Hannemann said, it was that neighbor island hotels did not experience the same boost as Waikiki properties.
"It’s too bad it couldn’t be experienced for the rest of the state," he said.
But Toy said he has heard anecdotally that some neighbor island properties have experienced carry-over business, much of it at the last minute, from attendees at the APEC meetings.
"A number of attendees, whether it be press or business leaders … are picking up extended stays," he said. "So we’re having a lot of post-APEC travel."
Both Toy and Hannemann said the conference highlighted Honolulu’s ability to host a prominent event and should help the state attract other large-scale meetings in the future.
"The bottom line is, I think, there was some skepticism as to whether Honolulu could host a conference of this magnitude," Hannemann said. "I think we erased all doubt that we could, and then some."