Revenues at local hotel operator The Castle Group dropped 23 percent, reflecting continued weakness in the tourism market.

Revenues for the three months ended June 30 slipped to $3.57 million from the year-earlier's $4.62 million.

But the company said its net losses narrowed to $462,000 during the latest second quarter from the year-before's $545,000 loss.

"The second quarter was challenging as we continue to see weak demand and daily rate compression at unprecedented levels, especially in Hawai'i," said Alan Mattson, president and chief operating officer of The Castle Group.

"The second-quarter results reflect our adjustment to the 'new normal' in today's travel environment."

The company, through its Castle Resorts & Hotels, manages hotels and resort condominiums in Hawai'i, Micronesia, Thailand and New Zealand. Castle Resorts operates eight properties on O'ahu, seven on Kaua'i, five on the Big Island and two each on Maui and Moloka'i. Castle in May took over the management of four Hawai'i properties from the now-defunct Marc Resorts.

The company said its management and service fee revenue rose 18 percent to $701,798 due to the addition of several new properties.