Yes, indeed, the industry is doing well but we believe the industry is not being sensitive to its long term market needs. Almost all of the hotels are in the top end of the market curve. Our rates are among the highest in the US.
There is a simple formula at work here. As the rates go up, you loose some of your market. The only way to stop this long term trend is to build hotels that fit segments of the market instead of only the top of the market.
The University of Hawaii has a TIM School, where the focus is on Tourism in general. It needs to have a Hotel School! One is being considered on Maui but we believe one is needed on Oahu now!
Hawaiian Airlines is producing a nice profit and this surely will bring more seats into the market in the form of competition. These seats will need rooms and in turn these seats will be filled by people who want to pay much less for those rooms than the pricey Waikiki market.
We are going to see a whole new class of hotels begin to open in West Oahu where the land is available. These properties will have lower room rates and still satisfy the Hawaii Bound "Newbies" that will be coming.
Further, this scenario is one that any rent a car operation should be keeping their eye on.
If you are looking for a hotel to buy or sell in Hawaii, call us at Pacific Rim Business Consultants, www.pacificrimbusinessconsultants.com. We can get it done for you!