Hawaii Hotel Rates Just Hit New U.S. Record—And It’s Not Over Yet

Hawaii hotels have long ranked among the most expensive in the country, but 2024 set a new high. The state officially recorded the highest average daily room rate in the U.S. at $364 before tax and fees. That figure, sourced from the state’s Tourism Data Warehouse, even surpasses major metropolitan areas like New York City and Boston.

Oahu was the lowest at $284 nightly, and Maui was the highest at $544. In the middle were Big Island at $427 and Kauai at $423 nightly. Keep in mind those are pre-tax and pre-fee prices so don’t even come close to reflecting the total visitors pay.

For Hawaii travelers, the news gets worse. With proposals to raise Hawaii’s already steep hotel tax to an unknown degree, travelers could soon see costs climb even higher when booking a stay in the islands.

How Hawaii compares to other high-cost destinations.

While hotel costs have risen sharply across the country, Hawaii’s increases stand out as outpacing the rest of the nation, especially in light of a softening Hawaii visitor market.

According to STR, the national average daily hotel rate in the U.S. in 2024 was just $160, meaning Hawaii’s hotel rates were more than double that national average. Even high-priced destinations like Manhattan, which posted an average daily rate lower than Hawaii, fell short by comparison.

Why Hawaii hotel rates are so high.

Hotel costs in Hawaii have risen steadily over the past decade, with 2024 showing a 28.8 percent increase compared to 2019. Despite this jump, occupancy has not kept pace, with statewide hotel occupancy averaging 73.3 percent in 2024, down from pre-pandemic levels.

Several factors continue to push rates higher. One of the biggest cost drivers is Hawaii’s extensive tax structure. The current combined hotel tax is already 18 percent, also among the highest in the nation. A visitor booking a week-long 500-dollar-per-night hotel room already pays $630 in taxes alone, and that figure could rise further under new legislative proposals.

Another price hike on the horizon?

Hawaii lawmakers are actively considering raising hotel taxes again, a move that has sparked intense debate among visitors and residents alike. Many argue that tourism is already being pushed beyond affordability, with some visitors opting for alternative destinations.

Readers reacting to a recent Beat of Hawaii article on the proposed tax hike voiced strong concerns about rising costs. Kym noted that her upcoming visit to Maui may be her last, explaining that she could rent a nice beachfront villa with a pool in French Polynesia for the same nightly rate as a hotel in Maui. Similarly, Greg questioned the logic of making travel to Hawaii even more expensive, stating that tourism numbers are struggling, and now lawmakers want to make it even more costly, which he does not understand.

While some believe a higher tax is necessary to offset tourism’s impact, others see it as another burden on both visitors and local businesses. Martin T., who works in the travel industry, observed that advance bookings are already weakening, warning that if the state wants to keep tourists coming, adding taxes and fees is not the way.

With Hawaii already leading the U.S. in hotel rates and facing growing visitor dissatisfaction over cost, the question remains whether lawmakers will double down on tourism’s economic importance or risk pricing out the very visitors who sustain the industry.

What visitors can do?

Choose hotels that are not oceanfront or rooms with mountain and city views. Having a microwave and/or small refrigerator in the room can help save a bundle on high food costs.

Understand that the average daily room (ADR) rate is just that. There will be places to stay far above and far below ADR.

Look at third-party platforms for deals. We recently scored significant savings at the new Renaissance Hotel in Honolulu, which had a rate lower than even the resident Kamaaina rate. The discount was available through Luxury Escapes and included a complimentary daily breakfast with no resort fees. Costco Travel is another source we use for hotel deals.

If we pay more for a hotel, we’ll look at how to save on activity costs and use Google Flights to search for and monitor better airfares.

What are your strategies to save money on Hawaii hotels?

Photo Credit – Beat of Hawaii at Hilton Hawaiian Village, Ali’i Tower.