updated 3/10/2010 2:04:25 PM ET 2010-03-10T19:04:25

Hospitality Advisors LLC says hotel occupancy in Hawaii increased during four of the past five months, indicating the market is beginning to recover.

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Its new report released Wednesday said occupancy in January stood at 66.5 percent, up from 63.1 percent in January of last year.

However, continued price discounting led to a 10.4 percent drop in the average daily room rate to $176.88.

Hospitality Advisors says the higher rate of occupancy coupled with a lower room rate led to a 5.6 percent drop in revenue per available room to $117.63 for January.

It says statewide room revenue in January fell by an estimated $9.3 million to $206.7 million.

Oahu led the state in hotel occupancy in January at 72.1 percent, followed by Maui, Kauai and the Big Island.

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