A&B's Maui hotel project on hold

By Andrew Gomes
Advertiser Staff Writer

After two years of work to obtain county approvals to develop a 134-room business-oriented hotel near the Kahului airport on Maui, Alexander & Baldwin has deferred the $13 million project because of high construction costs.

The company noted its decision in its annual financial report earlier this week, but an official was not immediately available yesterday to say if construction of the hotel is expected to proceed at a later time.

The deferral disappointed Maui tourism industry leaders, who say kama'aina travelers visiting Maui for business, government meetings and sports tournaments regularly can't find available rooms in Maui's civic center.

Also benefitting from such a project would be travelers stranded because of canceled flights — a need demonstrated earlier this month when a man shut down the Kahului airport after driving his SUV into the ticket lobby and lighting the vehicle on fire.

"We need it," said Terryl Vencl, executive director of the Maui Visitors Bureau. "It's an important piece of infrastructure for our business traveler, kama'aina traveler, families attending sporting events and others."

Vencl, who said she had been wondering what the hold up was for the long-anticipated project, said she was disappointed to hear about A&B's difficulty.

Lani Correa, executive director of the Maui Hotel Association, said she hopes the company can eventually build the hotel.

"Everybody pretty much stays at the Maui Seaside and Maui Beach (hotels), that's all there is in the Kahului area," she said. "There's a lot of business people who come to Maui overnight, and they have to stay on the south side."

A&B, which discussed the project publicly in early 2001, planned to build the hotel on a 3-acre triangle-shaped property at the intersection of Dairy Road, Haleakala Highway and Keolani Place, which leads to the airport. An adjacent piece of property just under an acre was envisioned for future commercial development, possibly retail and/or restaurants.

A&B said in its report that construction bids were obtained last April, after submitting construction plans for review in December 2002. The Maui County Council approved a zoning change and Community Plan amendment in March 2002.

The four-story hotel was to be managed by Marriott International as a Courtyard By Marriott, the company's moderate-priced brand aimed at business and leisure travelers.

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