Tourism is the core of O'ahu’s economy. Attracting more visitors than any other island in the state, O'ahu offers a Hawaiian experience in a relatively urban setting, particularly in Honolulu. The market has historically been one of the strongest in the United States, rivaling New York City in overall occupancy performance. Last decade, tourism reached an all-time high in 2019, with visitor arrivals surpassing 10.4 million for the state of Hawaii that year. While the pandemic took a considerable toll on the market, O'ahu typically achieves occupancy levels around 80.0% during periods of economic strength. In 2023, occupancy reached 80.0% once again, while ADR surpassed $280; thus, RevPAR reached an all-time high. Factors contributing to this trend included the ongoing recovery of international inbound tourism, sustained ADR growth, and more-stringent regulations on short-term vacation rentals. Performance metrics remained relatively stable in 2024 given a softening in domestic travel, coupled with the influence of the August 2023 wildfires on the island of Maui. While there is some concern related to airline-seat reductions in the first half of the year, the overall outlook for 2025 is cautiously optimistic. Tourism from international sources (most notably Japan) should continue to improve, although overall growth in visitor arrivals is expected to be modest, with larger increases anticipated in 2026 and 2027.

* Although the HVI cannot tell you what a particular hotel is worth, it does provide excellent “big picture” data, indicating which market areas are experiencing positive trends, and thus may present good investment opportunities. The HVI for the U.S. is a measure of the strength of the lodging industry as a whole and, specifically, the hospitality investment market. The HVI for the various identified markets can provide a basis to evaluate and compare different geographic regions. For more insight on the limitations and applicability of the HVI, please read the message on the HVI home page by clicking on the graphic at the top of this page.

ADR, Demand, Occupancy, RevPAR, and Supply Projections:

Change In Value For Market:

Oahu Island RevPAR Change

Oahu Island RevPAR

For more information, please contact:

John Berean Managing Director, Hawaii and Northern California Region Leader Valuation, Market & Feasibility Consulting [email protected] +1 281 381-3456 (w)