Starwood Hotels on Maui increases first phase

By Andrew Gomes
Advertiser Staff Writer

Six months after beginning to sell intervals at a time-share project under construction on Maui, Starwood Hotels & Resorts Worldwide has advanced construction to keep up with surprising demand.

Starwood, which is developing the 280-unit Westin Ka'anapali Ocean Resort Villas, originally planned to build 43 units as part of phase one. But the company said that since it began selling intervals shortly after Sept. 11, demand has led it to increase the first phase to 103 units.

"We opened for sales during a difficult period in the tourism industry, but the response has been extremely encouraging," said Raymond L. "Rip" Gellein Jr., chairman and co-chief executive officer of Starwood Vacation Ownership.

Hawai'i has been in high demand among time-share owners throughout the world who recently are finding a lot more exchange opportunities in the Islands, according to the American Resort Development Association.

Hyatt, Hilton and Marriott are among those selling time-share units in what has become a recent growth trend in Hawai'i, where industry sales have grown 133 percent from 1995 to 1999, to $252 million, according to a study from KPMG and Title Guaranty of Hawai'i.

Through 2005, roughly 20 projects in the works around the state are scheduled to be completed.

Gellein said vacation ownership projects are a natural complement to Starwood's traditional hotel lodging product, giving members access to Sheraton and Westin Vacation Ownership resorts as well as Starwood's more than 750 properties around the world.

Starwood purchased the beachfront parcel for the Ka'anapali project in October 2000 for $19.5 million, and had anticipated completion by early this year. Now occupancy of phase one units is expected in the fall of 2003.

Reach Andrew Gomes at agomes@honoluluadvertiser.com or 525-8065.