Even though Hawaii hoteliers are still offering room deals, a boost in occupancy statewide helped bring the industry a better return on its investment for March and for the first quarter.

Average daily room rates declined by 5.2 percent to $173.41 in March, while statewide hotel occupancy rose by 5.4 percentage points to 70.6 percent, according to a report today by Hospitality Advisors LLC. As a result, revenue per available room, the industry's best measure of performance, rose 2.7 percent to $122.43, the highest level in two years.

“;The first-quarter results are encouraging as confidence continues to slowly rebuild in the market,”; said Joseph Toy, Hospitality Advisors' president and chief executive officer.

“;While the trend is positive, the recovery will be a long process,”; he added.

Oahu's occupancy, which rose 6.4 percentage points to 76 percent, was the highest of the isles. Even though Oahu's rates fell 3.3 percent to $143.26, per-room revenue rose by 5.6 percent to $108.88.

Maui's occupancy, which rose 9.7 percentage points to 72.4, showed the most gain. Although Maui's rates fell by 9 percent to $231.47, revenue improved by 5.1 percent to $167.58.

“;This may be one of those earlier indications that we are beginning to bounce back,”; said Craig Anderson, general manager of the Westin Maui Resort & Spa.

Blitz marketing efforts, especially on the West Coast, cheaper airfares and more flights have helped boost Maui's occupancy, Anderson said.

But while hoteliers benefited from more tourists, rate has to grow before recovery, said David Carey, president and CEO of Outrigger Enterprises.

“;We've seen an occupancy bump, but we haven't seen a rate bump,”; Carey said. “;It's a continuing squeeze for hotel owners.”;

Hawaii island's occupancy rose by 1 percentage point to 57.9 percent, but room rates declined by 3.9 percent to $181.86, causing revenue to fall to $105.30. On Kauai, occupancy fell 5.8 percentage points to 55.7 percent, while rates dropped by 4.4 percent to $186.07 and revenue declined by 13.5 percent to $103.64.

For the quarter, occupancy statewide rose 4.1 percentage points to 70.8. Rates also dropped by 7.5 percent to $175.18 and revenue by 1.8 percent to $124.03.

While it was Hawaii's second consecutive quarter of occupancy growth, the hotel industry still has “; a long, long way to go,”; said Keith Vieira, senior vice president and director of operations for Starwood Hotels & Resorts in Hawaii and French Polynesia.

Full recovery is not expected until the group market stabilizes, Vieira said.

“;We are starting to see group bookings for 2011, so it may begin to stabilize in 2012,”; he said.