Statewide, hotels and resort condominiums raised the room rates an average of 8.9 percent, compared with the previous December, adding more than $11 to the average rate. Last month's average was $139.85 per room, up from $128.41 a year earlier.

Occupancy slipped more than five percentage points, however, to a statewide average of 69.1 percent from 74.27 percent in December 1995.

"The soft fourth quarter that the visitor industry experienced suggests that Hawaii hotels could have difficulty maintaining substantial ADR (average daily rate) increases without sacrificing occupancy," the monthly report said.

For the full year 1996, the statewide average room rate was $128.38, up 7.3 percent from $119.65 in 1995, and 1996 occupancy averaged 76.02 percent, down slightly from 76.55 percent. PKF-Hawaii said that strong performance early last year was countered by a late-year decline.

Oahu averaged 78.3 percent occupancy last month, down more than five points from 84.55 percent in December 1995, but still had highest occupancy among the islands. Oahu room rates averaged $121.79 a day, up from $112.57.

Maui occupancy last month was 60.38 percent, down from 66.36 percent in December 1995; Kauai was at 50.93 percent, down from 56.47 percent; and Molokai was at 31.05 percent, down from 36.02 percent.

The Big Island alone showed an occupancy increase, to 59.43 percent from 56.66 percent.

Hotels with the lowest rates had the highest occupancy last year, PKF-Hawaii said.