Occupancy at Hawai'i hotels sank to a more than two-decade low in March, with about one-third of all hotel rooms empty, according to the latest monthly survey of visitor accommodations.

Hospitality Advisors LLC reported that statewide hotel occupancy was 66.9 percent in March, which was about 11 percentage points lower than the 77.3 percent occupancy a year earlier and the lowest since the survey began in 1987.

The hotel industry, which has tried to entice more visitors and fill more rooms — in many cases by reducing rates — saw its average daily room rate fall 16.5 percent to $182.17, which was the sharpest decline since 1987.

"Everybody is hurting," said Joseph Toy, Hospitality Advisors president and CEO.

Visitor arrivals to the state via airlines and cruise ships were down 16.6 percent in March compared with a year earlier, according to state figures.

The March drop in visitors was the 13th consecutive month of declines. Preliminary April data for hotel occupancy indicates that the weakness appears to have continued last month as well, Toy said.

For the first quarter, hotel occupancy fell 9.7 percentage points from the year-ago quarter to 69 percent, which when combined with a 12.4 percent decline in the average daily room rate to $188.73 resulted in a 23.1 percent plunge in statewide hotel room revenue to $665.5 million.

Toy said the first-quarter results were the lowest since 1987 for the winter travel quarter that is Hawai'i's strongest season.

"It's been a remarkable first quarter as far as the steepness to this downturn," Toy said.

HAWAI'I NOT ALONE

The tourism industry downturn isn't just hurting Hawai'i. Other tourist markets are also suffering with diminished arrivals, low hotel occupancy and depressed room rates.

Hawai'i had the second-highest occupancy among the top 25 hotel markets in the first quarter, according to the report co-produced with Smith Travel Research.

The best-performing market was Miami, with 71.9 percent occupancy. Third was New York at 64.7 percent.

New York had the highest average daily room rate, at $195.10, followed by Hawai'i's $188.73 and then Miami at $175.29.

For revenue per available room, Hawai'i was the leader at $130.22, followed by New York at $126.33 and then Miami at $125.95.

Revenue per available room, a key measure of financial performance in the hotel industry, was down by about $39 in Hawai'i during the first quarter, from $169.50 a year earlier.

For March alone, revenue per available room was $121.89, down from $168.72 in the same month last year.

O'AHU FARED BEST

Among hotels divided by island and price class in March, the smallest declines occurred for O'ahu hotels and budget accommodations.

O'ahu occupancy fell 7 percentage points to 70.4 percent. Room rates on O'ahu declined by 14.4 percent to an average $147.20, while revenue per available room dropped 22.2 percent to $103.62.

On the Big Island, occupancy dropped 15.4 percentage points to 56.7 percent. The Big Island's room rate fell 14.9 percent to $189.78, bringing down revenue per available room 33 percent to $107.70.

Maui occupancy fell 13.4 percentage points to 66.9 percent. The average room rate fell 19 percent to $248.16, while revenue per available room dropped 32.6 percent to $166.05.

On Kaua'i, occupancy dropped 12.6 percentage points to 64.3 percent. Kaua'i's room rate fell 11.6 percent to $192.85, bringing down revenue per available room 26.1 percent, to $124.08.

Statewide, occupancy for budget properties declined 4.2 percentage points to 75.6 percent. Budget room rates fell 13.9 percent to $90.24, while properties posted an 18.6 percent reduction in revenue per available room to $68.18.

Luxury hotels recorded the largest decline in occupancy — 13.6 percentage points — to 64.9 percent. Luxury room rates fell 17.2 percent to $263.18, while revenue per available room was $170.78, down 31.5 percent from the year earlier.

The survey by Hospitality Advisors included 163 properties representing 47,028 rooms, or 82.8 percent of all lodging properties with 20 rooms or more in Hawai'i, including full service, limited service and condominium hotels. The survey generally excludes properties under 20 units, such as small bed and breakfasts, youth hostels, single family vacation rentals, cottages, individually rented vacation condominiums and sold time-share units no longer available for hotel use.