I was in Kona, Hawaii, this past week, and thought I’d share some drive-by economics. High on the list was the low level of occupancy at major hotels and resorts, with golf courses deserted – quite literally zero players – and luxury hotels running on skeleton staff.
The most extreme example? The luxury Mauna Lani Resort on the Big Island, adjacent to the Fairmont Orchid where I stayed, is quite literally mothballed. It is closed until November 1. Spooky and more than a little surreal to think of a 300-plus room resort taped off and deserted.
Relatedly, here is July hotel occupancy data for the Hawaiian islands (via Honolulu Advertiser / STR):
As always, if people have other data points to share, post ‘em here. I’m particularly interested in commercial real estate data, as the continuing problems in this area – as shown in the above example — are rapidly passing the criticality point where lenders can “extend and pretend” much longer.
Related posts: