Turtle Bay upgrade in final phase

By Andrew Gomes
Advertiser Staff Writer

Turtle Bay Resort is wrapping up the bulk of what has grown into a $50 million renovation of the vacation complex on O'ahu's North Shore and is seeking permits for the final part of the aggressive improvement project begun almost two years ago.

Resort owner Oaktree Capital Management LLC recently submitted permit applications to add two low-rise buildings to the resort's Ocean Villas and a new ballroom to complete a master plan to reposition the property. Oaktree took control of Turtle Bay in December 2000.

Originally, Oaktree estimated renovation work would cost $20 million, but the scope of the work has continued to expand, and results are beginning to pay dividends.

"I think we've been very successful," said Elizabeth Fitzgerald, director of special events and public relations for the resort, which has been managed by Benchmark Hospitality of Woodland, Texas, at Oaktree's direction.

Upgrades to date have allowed the resort to increase its average room rate from $109 a year ago to $169 today, she said.

By the middle of March, Fitzgerald said, all 400 rooms in the hotel's main building will be back in service after renovations that kept one-third of rooms out of commission throughout last year.

Oaktree also renovated the main lobby, improved two golf courses, built a golf clubhouse, added a spa and a second pool, increased ballroom space by 8,000 square feet, and spent $150,000 per unit to upgrade 42 cabanas at the resort's Beach Cottages complex.

Renovation of one restaurant is ongoing, and will be followed by work on a second restaurant, scheduled to be completed by mid-May.

Fitzgerald said Oaktree has not decided what to do with the 48 Ocean Villas units, which have been used as temporary office space and storage. If permits are approved, another nine units would be built.

"There's some great opportunity out here," she said, explaining that the Ocean Villas, on the Kahuku side of Turtle Bay Resort, could be returned to the hotel rental pool or become time-share units, though she stressed that no decision has been made.

Oaktree's goal is to increase its split of customers between business groups, independent westbound tourists and independent eastbound tourists to equal parts — a challenge for Turtle Bay because it for so long lacked meeting space.

Del Webb developed the property originally known as Kuilima Hotel in 1972 for $27 million. In 1988, Japan-based Asahi Jyuken Inc. bought the resort for $128 million.

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