Hotel revenues decreased for the first time in over a year in March, due to a decline in hotel occupancy and a reduction in the number of rooms available from their March 2015 levels.

The industry earned $481 million in total statewide revenue during March, as occupancy was down nearly 1 percentage point from March 2015 to 79.1 percent for the month, according to a report released by Hospitality Advisors LLC.

Despite lower occupancy, the statewide average daily room rate, ADR, climbed 2.7 percent in March to $254.89. The modest gain in the average daily room rate was enough to push statewide revenue per available room up 1.7 percent from the year before to $201.62.

Revenue per available room, or RevPAR, is the rate that each hotelier gets for every room regardless of whether it is occupied. It is considered to be one of the best measures of industry performance.

Barry Wallace, executive vice president of hospitality services for Outrigger Enterprises Group, said weak currency exchange rates in Hawaii’s largest international markets were a challenge for the industry.

“There were a lot less Canadian arrivals this year,” Wallace said.

There was a 13.8 percent decrease in arrivals from Canada in March, according to the Hawaii Tourism Authority. The report said March was the third consecutive month of declines in arrivals of and expenditures by Canadian tourists.

Wallace said Hawaii is also experiencing a hit due to weaker currencies in Japan and Australia.

March occupancy on Oahu slipped to 82 percent from 83.4 percent in March 2015. Occupancy in Waikiki was 83.5 percent for the month, nearing a 2-percentage-point drop from the year prior.

Oahu room rates ticked up 2.12 percent to $211.92, and RevPAR was virtually flat with the year prior at $173.77. Waikiki hotel rooms went for $210.52, 3.2 percent more than in March 2015. Waikiki hoteliers achieved a RevPAR of $175.78, approximately 1.2 percent above March 2015.

The industry will be able to make up for March’s numbers, Wallace said, noting that demand in April and May was healthy.

“Most of us are seeing a little bit better April-May than we did last year,” Wallace said. “Summer looks like it is going to be very strong.”

Despite the March dip in revenue, Hawaii’s hotels set records in the first quarter of 2016.

First-quarter total hotel revenue was a record $1.44 billion, beating last year’s total by 1.3 percent.

The quarter set the third successive record of first-quarter hotel revenue, said Joe Toy, president and CEO of Hospitality Advisors.

The record was driven by incentive groups and high-end travelers from the U.S. East market, Toy said.

“Typically, people coming from the U.S. East spend more and stay longer,” Toy said.

Average daily rates for the first quarter climbed 2.2 percent to $257.59 in the quarter, and revenue per available room grew 3.4 percent to $208.65.

Oahu hotel occupancy in the first quarter averaged 84.2 percent, up nearly 1 percentage point. Room rates reached $220.41, a 2.5 percent increase over the previous year, and RevPAR gained 3.4 percent to $185.59. Waikiki occupancy was nearly 1 percentage point up from the year-earlier period to 85.6 percent with ADR of $220.31. Waikiki RevPAR increased by 4.4 percent to $188.59.

Occupancy on Maui reached 79.3 percent for the first quarter. Maui ADR dipped slightly to $349.15 while RevPAR remained relatively unchanged at $276.88.

“Maui did extremely well, especially in the high-end markets,” Toy said.

The luxury resort region of Wailea was 84.1 percent full, up 2.6 percentage points, with an ADR of $498.41.

Wallace said new hotels joining the market and some reopening after renovations could lead to discounted prices for travelers.

“Within the market there are some wild cards coming to play,” Wallace said. “We have a lot of new inventory.”

Some of the wild cards include the opening of the Hilton Garden Inn Waikiki Beach, Aqua Ohia Waikiki Hotel, The Surfjack Hotel and Swim Club and the recent renovation of Marriott Courtyard in Waikiki.

Wallace also said the Ritz-Carlton in Waikiki will become a serious competitor at the top of the market.

“They’ll do all sorts of introductory promotions to get occupancy into their hotels, and that will cause everyone else to discount,” he said. “There will be a whole array of funny things going on between now and the end of the year.”