HONG Kong's hotels have enjoyed their best October since before the 1989 Tiananmen Square massacre, boosted by high demand from business travellers and shrinking room supply. The territory's 20 top-performing hotels all enjoyed occupancy levels well above 90 per cent, according to Hong Kong Hotels Association figures released yesterday. While October and November are traditionally the best months of the year for Hong Kong's hotels due to the excellent weather, this year has been exceptional, with many properties reporting their best monthly performance since 1988. Park Lane Radisson fared best of all, reporting a 97.14 per cent room occupancy rate last month. Park Lane resident manager Calvin Wong said trade was up 30 per cent on the same month last year. Mr Wong expected the boom to continue through to December, with his hotel predicting an occupancy level of 95 per cent this month. The Park Lane was closely followed by the Royal Pacific (96.86 per cent), Royal Garden (96.81 per cent), Omni The Hong Kong (96.8 per cent) and Holiday Inn (96.43 per cent). This compares with an average occupancy of 87 per cent in October 1991 and 89 per cent in October last year. Like other hotels in Hong Kong, the Park Lane benefited from a string of trade fairs held last month in Hong Kong and southern China, bringing business travellers flooding into the territory. This was complemented by a rising number of individual tourists and commercial travellers. ''October was a tremendous month and our advance bookings look great,'' said Liam Lambert, Excelsior Hotel general manager and executive committee member of the Hong Kong Hotels Association. ''We seem to have bounced back.'' Visitor arrivals have risen by around 11 or 12 per cent this year. Meanwhile, the flood of available rooms has eased thanks to hotel closures for redevelopment as office space. The two factors have combined to boost occupancy levels and bring smiles to the faces of the owners of Hong Kong's remaining hotels. Harold Yung, general manager of the Metropole Hotel and Hong Kong Hotels Association executive committee member, said: ''Supply is down, demand is up and occupancy in November should be just as good.'' Tariffs charged in October are traditionally among the highest of the year. The Peninsula once again had the highest average room rates in October at $2,615 a night, followed by the Regent at $2,305 and the Island Shangri-La at $1,940. While occupancy is expected to remain high this month, revenue should fall due to the seasonal influx of package-holiday visitors.