May hotel occupancy slipped 0.8 of a percentage point to 68.3 percent, compared to May 2007, while the average daily room rate increased 2 percent to $190.66. Revenue per available room edged up to $130.16.

Although air arrivals in May decreased 6.4 percent year over year, a large portion of those losses would have been visitors flying in to take interisland cruises, not stay in hotels, according to Hospitality Advisors. The downturn in arrivals was also cushioned by a decrease in hotel room supply because of renovations.

The monthly Hawaii hotel flash report, released Wednesday, was surveyed by Hospitality Advisors and Smith Travel Research.

Honolulu-based Hospitality Advisors said budget properties statewide saw impressive gains in occupancy, up 8.6 percentage points to 72.3 percent. Economy and midpriced hotels also benefited.

Luxury and upscale properties saw lower occupancy and only nominal room rate gains, according to the report.

Luxury resort regions also reported softer performances in May.

The Big Island's Kohala Coast saw declines in occupancy and average daily room rates, down 3.7 percentage points to 52.9 percent and down 1.6 percent to $276.44, respectively.

Maui's Lahaina-Kaanapali-Kapalua area had a 6.4-percentage-point decrease in occupancy to 67.6 percent, but room rates held at $226.72. Maui's Wailea region was the most resilient, down only 0.5 percent point in occupancy, but up 4.8 percent in room rates, to $387.82.

Oahu hotels saw their occupancy increase by 1.7 percentage points to 72.5 percent, while room rates were up 3.8 percent to $166.38. That meant a 6.3 percent increase in revenue per hotel room.