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