The Honolulu-based parent of Castle Resorts & Hotels said it lost $120,519 in the third quarter as falling occupancy and room rates took their toll on Hawai'i's tourism sector.

The loss compares with a profit of $15,323 in the same quarter a year earlier.

Castle Group said third-quarter revenue fell to $4.7 million in the third quarter, down 16 percent from $5.6 million in the year-earlier period. Through the first nine months of 2008 revenue was down 1 percent to $15.3 million from the same period in 2007.

Castle said its operations outside of Hawai'i tempered the impact on the overall revenue picture as did the expansion of the portfolio of properties under management during the past nine months.

"We are growing our existing market share at nearly all of our destinations and properties; however with the total tourism marketplace shrinking, our occupancies are falling below prior year's levels, which in turn drives down overall revenues," said Alan Mattson, chief operating officer of The Castle Group.

Castle Resorts & Hotels manages 26 properties throughout Hawai'i, Micronesia, New Zealand and Thailand.