Hawai'i's hotel industry is on track to reach record room revenues of nearly $3 billion this year, beating last year's record of $2.73 billion, said Hospitality Advisors LLC president Joseph Toy.

Hawai'i hotels fared exceptionally well in the first nine months of the year, surpassing records set during the same period last year in room revenue, average daily rates and revenue per available room, according to data released yesterday by Hospitality Advisors.

Room revenue for the first three quarters of the year ending in September was $2.27 billion, and average daily rates reached $165.36, thanks to a tighter room supply and an increase in visitor arrivals. Year-to-date statewide occupancy was 82.5 percent, up 3.3 percentage points over the same period last year, and revenue per available room — a key measure of profitability — was $136.40.

"The third quarter was exceptional," Toy said. "If room revenue keeps pace with the first nine months of the year, we should approach $3 billion in room revenues, which will be an all-time high."

Toy attributed the gains in part to growth in higher-spending travelers, including Japanese visitors, the cruise market, U.S. East visitors and business travelers. He also cited overall improvements in hotel properties and public infrastructure in the past several years, particularly in Waikiki.

Hotel figures for September, which traditionally marks the start of tourism's shoulder (or slower) season, also showed year-over-year improvement. With hotels at peak levels in busy seasons, "excess demand" is filling the shoulder season, Toy said.

"We see more of the corporate and group meetings being shifted over in the shoulder period, which is good," he said.

Statewide hotel occupancy for September was 79 percent, up 4.1 percentage points compared with the same month last year.

Statewide average daily room rates were $156.37, topping the previous September record set last year. Revenue per available room jumped 18.5 percent to $123.48, the nation's second highest behind New York City.

O'ahu and Maui hotel occupancy increased to 86.7 percent and 75.4 percent, respectively. O'ahu's occupancy is higher in part because 1,000 rooms are out of service from Outrigger's Beach Walk development, Toy said. Big Island hotel occupancy dropped 2 percentage points to 62.9 percent, while Kaua'i occupancy fell 1.9 percentage points to 74.1 percent.

All islands saw growth in average daily rates and revenue per available room over September last year.

Upscale properties recorded a 17.2 percent increase in room demand to 254,000 room nights sold, as well as a 25 percent growth in room revenues to $37.6 million for September. Luxury properties also saw room revenue increase by 13.8 percent to $127.1 million.

All hotel segments, from economy to luxury, 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 141 properties representing approximately 48,443 rooms reporting, or 79.5 percent of all lodging properties with 20 rooms or more in the state.

Reach Lynda Arakawa at larakawa@honoluluadvertiser.com.