Outrigger to manage Kona time-share
By Katherine Nichols
Advertiser Staff Writer
Fairfield Resorts Inc. said yesterday it has bought Kona Hawaiian Village and will hire Outrigger Enterprises Inc. to manage the Big Island time-share.
The agreement is the first major deal between Orlando, Fla.-based Fairfield, the world's largest time-share company, and Outrigger, Hawai'i's largest lodging company, since the two announced earlier this month they were forming a marketing and development alliance.
Fairfield purchased Kona Hawaiian Village, a 33-acre ownership resort in its first phase of development with 72 units overlooking Kahului Bay in Kailua, Kona, from Kona Hawaiian Vacation Ownership LLC.
Kona Hawaiian Vacation Ownership, a 5-year-old resort developer, generated about $30 million in sales last year, according to Alan Dickler, president and chief operating officer of Adventure Resorts Realty Inc., the managing member of Kona Hawaiian Vacation Ownership.
The companies would not disclose terms of the deal.
When completed, Kona Hawaiian Village will consist of 270 bungalow-style suites, Fairfield said in a statement. Outrigger will assume all on-site management responsibilities.
"It marks a new direction for Outrigger," said Perry Sorenson, chief operating officer of Outrigger Hotels & Resorts. "Time-share is something that we've looked at for a long period of time."
The move comes in the midst of a rapidly expanding Hawai'i time-share market. Hilton Hawaiian Village has devoted one tower to time-share operations and plans for a second time-share tower are moving forward. Starwood Hotels and Hyatt are also involved with the development of time-shares in Hawai'i, and the Marriott Vacation Club International expects to develop 750 time-share vacation units at Ko Olina on O'ahu's west shore.
Sorenson said that Outrigger may consider incorporating its brand name into the property, depending on future regulatory approvals. Eventually, Outrigger may convert some of its own properties to time-shares.
Fairfield Resorts has more than 450,000 owners worldwide. Outrigger Enterprises represents more than 12,000 hotel rooms and condominium units throughout Hawai'i, Micronesia, Australia and the South Pacific.
