The number of visitors staying in Hawai'i hotel rooms dropped overall last year — mirroring a decline in visitor arrivals — but hotel revenues remained high.

The average occupancy rate in 2007 fell to 75.3 percent from 79.5 percent a year earlier.

Hawai'i's average daily hotel room rate in 2007 rose to $199.87, a 6.8 percent increase over 2006. That helped boost hotel industry revenue to more than $3.1 billion matching the previous record set in 2006, despite a softening of the state's leading industry.

The room rate rose again in December even though hotel occupancy slipped 1.7 percentage points to 70.6 percent, according to data compiled by Smith Travel Research and Hospitality Advisors LLC. It was the 20th straight month that hotel occupancy fell on a year-over-year basis.

Revenue per available room, a key gauge of a hotel operator's performance, rose to $158.58, helped by the Honolulu Marathon and the December holidays, according to Hospitality Advisors president Joseph Toy.

As has been the recent trend, the decline in occupancy reflects a drop in visitor arrivals for the year. A state Department of Business, Economic Development and Tourism report for 2007 showed arrivals dipped 1.2 percent last year to 7.37 million, confirming a continued cool-down of the state's top industry.

Toy noted that much of the rate increases were driven by growth in the upscale and midprice sectors as a number of properties shifted into higher classifications after renovation.

"Although rates have increased, Hawai'i's product base continues to improve to strengthen Hawai'i's positioning over the long term, the current market softening notwithstanding," Toy said.

While hotels across all classifications experienced softer demand in 2007, statewide luxury through economy hotel segments were able to raise room rates to off-set the fall-offs in occupancy, he said.

Hawai'i's luxury regions of Wailea, Maui and Kohala Coast on the Big Island saw daily rate growth of 9.5 percent to $423.28 and 6.6 percent to $301.44.

For the year, Kaua'i was the only island that reported gains in both occupancy and daily rate, with occupancy growing slightly by 0.6 percentage points to 75.8 percent, and an 8.1 percent daily rate increase to $205.35.

O'ahu led all islands in occupancy at 76.9 percent and room rates that rose 7.4 percent to $168.67.

Maui occupancy decreased by 3.4 percentage points to 76.5 percent; however, Maui average daily rates continued to lead the state at $262.23, representing a 6.6 percent growth over 2006. The Big Island saw a 3.4 percentage point decline in occupancy to 67.6 percent, but achieved a 5.7 percent increase in average daily rates to $202.34.

The December survey included 152 properties representing 46,161 rooms, or 82.3 percent of all lodging properties with 20 rooms or more, including hotels and condominiums.

On Tuesday, the State Department of Economic Development and Tourism reported that visitor arrivals fell 1.2 percent last year to 7.37 million. Visitor spending rose 0.9 percent to $12.2 billion in 2007, the agency reported. But that was not enough to keep pace with inflation in Honolulu which was estimated to be about 4.5 percent last year.

Reach Robbie Dingeman at rdingeman@honoluluadvertiser.com.