Hawai'i's hotel industry continued to set records last month, reaching new July highs in occupancy, average daily rates and revenue per available room.

Hawai'i hotels also enjoyed the highest occupancy among the top 25 hotel markets in the nation. Hawai'i's average daily rates and revenue per available room ranked second behind New York City.

Statewide hotel occupancy was 88.3 percent and average daily rate was $174.89 last month, according to Hospitality Advisors LLC. But the hotel consultancy company cautioned that the high occupancy reflects a declining room supply rather than higher demand. A total of 1.66 million room nights were sold in July, down 0.4 percent from a year ago.

Still, revenue per available room — a key measure of profitability — grew 12.6 percent year-over-year to $154.44, the highest on record for July.

"Our July was phenomenal," said Dave Johnson, director of revenue management for the Westin Maui Resort & Spa. "And our year-to-date numbers have been phenomenal as well."

Johnson said July occupancy at the Westin was in the mid-90s, up a couple points from last year.

"But it's really all about average rates for us because we really have nowhere to grow occupancy-wise anymore. The hotel is just so busy that it's really tough to sell any more rooms," he said, adding that rates have been "very strong."

"Year to date we're significantly ahead of last year, and we expect to finish the year very strong."

All major islands had higher occupancy, average daily rates and revenue per available room.

O'ahu had the most growth in occupancy, average daily rates and revenue per available room last month. O'ahu hotels were 92.7 percent full, up 2.9 percentage points over July last year and had the highest occupancy among the islands. Room rates grew 12.1 percent to $143.73, and revenue per available room rose 15.8 percent to $133.24.

Big Island properties had the lowest occupancy at 79.5 percent.

Maui enjoyed the highest average daily rates and revenue per available room at $235.41 and $199.86, respectively, while O'ahu had the lowest numbers in those categories.

Every hotel class, from budget to luxury, also saw increases in occupancy, average daily rates and revenue per available room.

The monthly hotel survey, compiled by Smith Travel Research with Hospitality Advisors, averaged more than 146 properties representing about 48,759 rooms reporting, or 79.8 percent of all lodging properties with 20 rooms or more in the state.

Reach Lynda Arakawa at larakawa@honoluluadvertiser.com.