Hilton modifies timeshare to address view concerns
| • | Map of proposed redevelopment |
By Frank Cho
Advertiser Staff Writer
The Hilton Hawaiian Village is moving forward with modified plans to develop an $80 million high-rise timeshare project on its Waikiki property.
The 342-unit project, proposed in April, was set to be built with a diamondhead-'ewa axis on a narrow strip of land on the former site of the Waikikian Hotel and Tahitian Lanai restaurant.
But that plan raised concern among some condominium owners in Waikiki about obstruction of their ocean views, traffic congestion and increased pollution in the already densely populated area of Ala Moana and Dewey Lane.
Hilton Grand Vacations Co., the vacation ownership arm of Hilton, says it now will build the planned 37-story luxury tower on a mauka-makai axis to help preserve ocean views from other buildings behind it along Ala Moana.
While the change in orientation is expected to cut the number of Hilton units that have ocean views — and reduce sale prices for the timeshares by about 10 percent — Hilton said it hopes the changes will allay community concerns.
Hilton plans to start seeking approvals next month but has not set a date to begin construction.
"The result will be a smaller impact on views in the surrounding buildings and a larger area of open space at the ground level," said Peter Schall, senior vice president-Hawai'i and managing director of the Hilton Hawaiian Village.
But some homeowners said yesterday that repositioning the building does not solve their concerns of crowding, noise and pollution.
"This is not an asphalt jungle, this is Hawai'i. We will do everything we can to stop this project," said Baki Thomas, who lives in a 23rd-floor penthouse in the Wailana across the street from the project.
The modifications also call for creating a pedestrian mall that would provide access to Kahanamoku and Waikiki beaches from Ala Moana. Hilton also plans to expand Dewey Lane from 20 feet to 30 feet wide to handle increased traffic and provide better access to the property.
If approved, the high-rise will be Hilton's seventh tower and second timeshare project on the Waikiki property.
"If they do open up Dewey Lane, that means we would be getting taxis, buses and everything else down there and that is a large concern," said Richard Stephenson, a condo owner in the The Renaissance Ilikai Waikiki Hotel next to Hilton's proposed building site.
Stephenson said he was also concerned about Hilton's plans to reposition the timeshare project, which he thinks could block ocean views for dozens of Ilikai condo owners.
"What this means is property values will be affected and residents here are going to flip," Stephenson said.
But Hilton officials said the new plan puts the tower far enough back from the shore and should not block any condo views from Ilikai.
Ilikai views not blocked
Daniel Dinell, vice president of strategic planning and community affairs for the Hilton Hawaiian Village, said the new plan will not block views from the Ilikai and will expand the amount of open space on the 1.9-acre site from 50 percent to 52 percent.
"We are able to do this because the parking is contained within the building. Before it was next to the building and took up more space," Dinell said.
Hilton has been planning to develop the sliver of land wedged between its property and the Ilikai since it bought the property for $20 million in 1999.
Hilton's plan coincides with the rapid growth of the timeshare industry in Hawai'i, which is estimated at $250 million and 68 properties statewide. Starwood Hotels and Hyatt are also involved with the development of timeshares in Hawai'i, and the Marriott Vacation Club International expects to develop 750 timeshare vacation units at Ko Olina on O'ahu's west shore.
The exact time construction begins on the new timeshare tower will depend on how sales go at Hilton's Lagoon Tower, Dinell said. That tower, with 264 units, was renovated for $36 million and reopened in January as a timeshare.
So far, about 30 percent of the units have been sold.
Hilton executives said timeshares, often called vacation ownership units, have a more predictable revenue stream than hotels and could help stabilize Hawai'i's visitor industry during an economic downturn.
Timeshares hold steady
Based on a survey following the Sept. 11 attacks on the Mainland, timeshare occupancy rates held up much better than hotels.
Timeshare occupancies declined on all islands in September, with O'ahu falling the most with a 10.3-percent drop, according to the survey by PKF Hawaii. Maui recorded the highest occupancy for that month with 89.9 percent, down just 4.6 percent from the same month a year earlier.
But timeshare occupancy declined only 7.6 percent statewide in September, far less than the 24.7 percent drop in hotel room occupancy, the survey showed.
During September, timeshare properties reported occupancy percentages ranging from the high 60s to the high 80s.
Hotels averaged occupancy percentages from the low 50s to the mid-60s.
Hilton will present its new design plans to the public at a Waikiki Neighborhood Board meeting Nov. 13 at 7 p.m. in the Waikiki Community Center.
