United States -  Oahu Island

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 is one of the strongest in the United States, rivaling New York City in overall occupancy performance. In 2015, travelers to Europe and South America were displaced to this market, as terrorist activity and the Zika virus, respectively, affected the perception of those markets as tourist destinations, causing a minor increase in occupancy. By 2019, tourism had reached an all-time high, 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 in excess of 80.0% during periods of economic strength. In 2023, occupancy reached 80.0% once again. ADR also increased, surpassing the $280 mark in 2023, and RevPAR reached an all-time high. Factors contributing to the 2023 performance levels included the ongoing recovery of international inbound tourism, as well as sustained ADR growth. The outlook for 2024 remains positive, as tourism from international sources (most notably Japan) should continue to improve, although overall growth in visitor arrivals is expected to be modest.

* 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.

Change In Value For Market:

Significant Value Increase: Greater than +10%
Moderate Value Increase: Between +3% and +10%
Stable Values: Between -3% and +3%
Moderate Value Decline: Between -3% and -10%
Significant Value Decline: More than -10%

For more information, please contact:

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