Outrigger resorts get Marriott label
By Kelly Yamanouchi
Advertiser Staff Writer
Outrigger Enterprises Inc. is renaming two of its resorts with the Marriott label to attract more corporate meeting business from companies more familiar with the Marriott brand.
The Outrigger Wailea Resort on Maui will be known as the Wailea Marriott, an Outrigger Resort. The Outrigger Waikoloa Beach on the Big Island will be called the Waikoloa Beach Marriott, an Outrigger Resort. The changes take place Jan. 1.
Outrigger, the largest Hawai'i-based hotelier, will continue to own and manage both properties. There are no expected workforce changes.
Outrigger will pay franchise fees, which typically include a percentage of revenue, to Marriott for the right to use the name and will be included in Marriott's sales system and the Marriott Rewards program.
Outrigger chief executive David Carey hopes the Marriott label will help the resorts to counter low occupancy rates. Occupancy at the two properties is in the 50 to 60 percent range, Carey said. He expects to see a 10 to 20 percentage point increase in occupancy after a year of the partnership. Corporate travel business currently makes up between 10 to 30 percent of business at each property.
"If you ask a corporate customer on the Mainland if they've heard of Outrigger, they may not have. But I can assure you they have heard of Marriott," Carey said.
Stan Brown, Marriott's vice president in the Pacific Islands, said the two properties will add to the company's collection of hotels in Hawai'i.
The Outrigger Waikoloa Beach is a 15-acre, 545-room resort on the Kohala coast of the Big Island. The Outrigger Wailea Resort is a 22-acre, 521-room resort. No other Outrigger properties are being considered to take on the Marriott brand, but Outrigger has discussed managing other Marriotts in areas including Australia and the Pacific Islands. Carey also said Outrigger's planned $300 million development on Lewers Street in Waikiki may include a Marriott hotel.
Reach Kelly Yamanouchi at 535-2470, or at kyamanouchi@honoluluadvertiser.com.
