Although the growth rate slowed for Hawaii hotels during the first quarter of this year, the industry still managed to set total revenue records and attain the nation’s highest average daily rate.

Gains in March occupancy, average daily rate (ADR) and revenue per available room (RevPAR) helped set a new total hotel revenue record for the month and contributed to a stronger first-quarter performance, according to a report set for release Tuesday by STR Inc. and Hospitality Advisors LLC. This monthly survey of Hawaii hotels includes 89 percent of all lodging properties with 20 rooms or more. It’s the largest survey of its kind in the state and is reported as part of the state’s official monthly visitor industry statistical report.

"It’s been a great ride, but this year we are starting to see some weakness in the market," said Joseph Toy, president and CEO of Hospitality Advisors. "From the second quarter and beyond in 2013 to the first part of 2014, we saw strong escalations in real room rate growth and occupancy since the gains were driven by pent-up demand for Hawaii. But in the second half of 2014, we saw pushback. Room sales were leveling out, while at the same time there was more growth from some of our competitive destinations with lower-rate structures."

Toy said Hawaii’s hotel industry has been cautiously watching the market.

"Fundamentals are still good relative to other mainland destinations; however, people are seeing more softness in the market than they did at the end of 2014. They are also noticing shorter booking windows going into the second quarter, which makes it harder to build up momentum going into the second half of the year," he said.

Performance was still fairly good in March, which saw statewide hotel revenue reach a new high of $484 million. At the same time, occupancy rose 1.4 percentage points to 80 percent, and ADR set a new March record of $247.78, which was 4.6 percent higher than the prior March. The gains in occupancy and ADR helped RevPAR grow 6.4 percent to $198.22, also a high for the month of March.

Partially because of March’s results, statewide hotels set a new first-quarter total hotel revenue record of $1.43 billion. While total revenue climbed 1.5 percent from last year, it was the second month in a row of low single-digit increases following three years of solid double-digit gains.

First-quarter room revenue, which also rose 1.5 percent from the first quarter of 2014, accounted for $967 million of the total revenue gains. The climb was mostly because of the first-quarter ADR, which rose 3.4 percent to $251.74.

Although visitor arrivals during the first quarter rose 3.5 percent, first-quarter occupancy stayed flat at 80.1 percent.

Higher room rates drove RevPAR up 2.5 percent to $201.64, the nation’s second-best result behind Miami-Hialeah, Fla.

Despite first-quarter gains, Toy said uncertainty is growing in the market. As such, hoteliers have been offering leisure deals, incentivizing same-year group travel and opening up additional kamaaina rates even during peak periods.

"It’s a good time to travel to Hawaii," Toy said. "But if you are a hotelier, there are concerns out there."

Oahu, which saw flat first-quarter room rates and slight dips in occupancy and revenue, was the first-quarter laggard among the isles. Oahu’s first-quarter occupancy fell 2.2 percentage points to 83.4 percent, while ADR increased a scant 0.6 percent to $215.60 and RevPAR declined 2 percent to $179.81.

Stronger first-quarter growth continued on Kauai, Maui and Hawaii island, which all posted gains in occupancy, ADR and RevPAR. But Toy said he expects Hawaii island will be the first market to see notable downturn as the market continues to soften.

"They tend to lead the lag," he said. "They are the canary in the coal mine."