Rental Sales Sandra Brahn – Managing Director, Andiamo & Revenue Operations
2025 RESULTS Revenue -
Revenue down 20% overall driven primarily by restrictive 1 week Sat to Sat stay requirement that was in effect during prime booking season
-
Additionally, in Nov 2024 we had a large group booking
-
ADR is up 12% YOY
Occupancy -
Of the units in our rental pool and the inventory available for rental, 61% occupancy
-
However, paid nights were down 26%
-
Fractional -- 60% of the released nights were rented; taking out owner take-backs and TRP, of the nights left in program until rental date, 71% rented
Unpaid Occupied Nights Owner stays, short notice, space available, TRP, owner guest, etc. -
3% overall increase (represent 83% of total nights)
-
Whole owner nights up 6%
-
Fractional owner nights – flat YOY
-
Short notice & space available – flat YOY
-
TRP nights – 11% increase
-
Owner guest – 25% increase
Revenue Management & Marketing Revenue Management Focused on rate optimization and flexible LOS (length of stay) policies to improve conversion and yield − Increased pricing variability – seeing good results so far − For example, increased festive rates an additional $500 over already elevated seasonal rates & reduced LOS from 7 to 5 12% ahead of budget for December − We will increase rates at targeted times in Q1 Sales & Marketing Significant marketing initiatives and expansion of sales network − Seasonal offers, targeted email campaigns, social media placements, travel agent events, etc. throughout the year − 55% of bookings resulted from promotions and campaigns we could directly trace and contributed to additional bookings based on “impressions” (by seeing Timbers Kauai in multiple online locations) that are more difficult to trace to the specific source
Booking Channel Mix Direct website
32%
phone resort
16% 5%
OTAs Expedia
13%
Booking wholesale Costco
3%
other
8%
Travel Agents website phone GVP Misc
8%
53%
16%
17% 12% (some "other" miscategorized) 9%
6% 3%
3% 3%
2% Virtuoso
2026 Pacing & Kauai Market Timbers Kauai Pacing for 2026 −
Expecting 66%+ occupancy for 2026
−
Already 444 nights OTB (“on the books” = reservations placed) and 1/3 of 2025 revenue is already booked for 2026
−
However, planned owner nights are up 25%, which could cap rentals at certain times of the year
Timbers Kauai is up 5% compared to this time last year for 2026 bookings!
The Kauai lodging market is pacing down 5% for 2026 compared to last year
Kauai Market 2025 Overall Kauai transient rentals have been down 2% - 3% in 2025 versus 2024 -
Varied by specific Kauai markets
-
Generally, occupancy has been lower due to international visitor reductions (esp. Canadians) and big swings in travelers’ expectations for the economic outlook
-
This was largely offset by higher ADRs
-
Timbers Kauai followed that pattern with a 12% increase in ADR but a bigger hit to occupancy (as indicated on p1 of the Rentals Update)
Industry Developments in 2025 -
Booking windows are shortening
-
Upfront pricing regulation went into effect in July nationwide -
-
Total price (including all fees other than taxes) must be displayed upfront on the listing No “surprise” fees later in the booking process Applies to all marketing/booking sites
Kauai lodging tax will increase.75% January 1; total tax collected from guests will be 18.71%
October rentals across Kauai: occupancy up 3.5% but ADR down 8.1%
Looking Ahead -
Awarded Michelin Key 2nd year in a row
-
Direct listing on Airbnb Luxe in 2026
-
Expansion of Virtuoso bookings (first year is always lowest volumes)
-
Targeted campaigns to specific guest personas (i.e., golfing associations specials, west coast “last-minute” deals, etc.)
-
Add a travel advisor “mode” to website: advisor-friendly area with fact sheets, benefits, and contact pathways
-
Continue to optimize Costco (12 % bookings and 12% revenue in2025 despite starting in Q2)
-
Continue improvements to guest journey on our website
-
-
Navigation (ability to return to main Andiamo page, for example)
-
Cross-portfolio search option (enter dates of travel and see availability across our locations)
Last-minute special pricing for owners across our portfolio if a residence is likely to be unoccupied (with owner consent to rate reduction)