Like many other places, Waikiki did not suddenly become aweak market. It became a harder one.
Yes, RevPAR slipped about 3 percent year over year through2025. Demand softened, but this is still a submarket running roughly 79 percentoccupancy on a trailing twelve month basis with ADR hovering around $267 andluxury hotels well above $300. Those are not weak fundamentals. Those are numbersthat most markets only wish they could achieve.
While international inbound travel has decreased, andoverall demand has evolved. What has changed the most is the thin margins inrevenue management. With so much information at everyone’s disposal, and anevolving marketplace, every decision matters.
Occupancy Is No Longer the only Goal. Profit Is.
For years, Waikiki could get away with selling volume andfixing rate later. That playbook does not work anymore. Labor costs have madesure of that.
Between wage increases, benefit expansions, and inflation,operating costs are permanently higher. Anyone still chasing occupancy for thesake of optics is actively hurting their bottom line. Selling the last tenrooms cheap does not solve a margin problem. It creates a rate integrityproblem that lasts far longer than one soft week.
The smarter operators are already adjusting. They arechoosing to hold rate, even if it costs them a few points of occupancy. That isnot being stubborn. That is understanding math. The data backs it up. ADR hasremained resilient, and RevPAR is projected to stabilize and grow again in 2026for those who do not panic and adjust their thinking.
Waikiki’s Secret Weapon
Waikiki’s biggest advantage is one that has been a constantfor years. Almost nothing new is getting built.
Outside of the 110 room Marriott Vacation Club that openedin late 2024, supply growth is essentially nonexistent. Zoning restrictions,construction costs, and entitlement hurdles make new development incrediblydifficult. That is not changing.
Instead of new builds, money is flowing into repositioning.LXR at Ka Laʻi. Adults onlyconcepts. Brand upgrades. These are product improvements, not new inventory.But they only create value if revenue teams price them correctly. Too manyhotels upgrade the product and then give it away out of fear.
That is how you erase your own ROI.
Internation Outlook
Yes, Japan and parts of Asia are taking longer to rebound.Everyone knows that. What matters is how you respond to it.
Making sure that a solid sell strategy is in place is thenumber one step. Understanding segmentation and how bookings are captured arekey in ensuring that profitable business is captured. Group business withF&B, direct bookings, Luxury Consortia’s, these are all segments that havealways been key in profitability, but even more so today.
Hotels that rely on blended ADR and comp set averages arealready behind. This market now rewards people who know exactly where theirprofitable demand comes from and are willing to say no to the rest.
What Actually Wins in Waikiki Now
The hotels that will outperform in 2026 and in the futureare those that do not panic. Hotels and operators that are pro-active and adaptwill continue to see success, while those that are reactive will continue tosee occupancy and ADR decreases. All seasoned hospitality professionals are familiarwith the saying “fix the mix”, in today’s environment this is truly the magicpill. It is not always easy to swallow and change the way things have been donein the past, but to grow every revenue professional must adapt.