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The Honolulu Advertiser
Posted on: Tuesday, July 24, 2007

Waikiki hotels part of $750M upgrade

Photo galleryPhoto gallery: Waikiki hotels renovations
Video: Historic Waikiki hotels will undergo renovations
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By Robbie Dingeman
Advertiser Staff Writer

Hawaii news photo - The Honolulu Advertiser

The Royal Hawaiian Hotel, foreground, along with sister Kyoya Management Co. property the Sheraton Waikiki, from which this photo was taken, will undergo millions of dollars in renovations.

RICHARD AMBO | The Honolulu Advertiser

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HOTEL RENOVATIONS

Hardly a week goes by in Hawai'i without news of a major hotel renovation beginning or wrapping up. This is a sampling of some recent projects.

O'AHU

  • The Hilton Waikiki Prince Kuhio in December completed a $65 million renovation of all of its 601 guest rooms and 17,000 square feet of meeting space.

  • The Ala Moana Hotel completed a multimillion-dollar renovation last year on its 1,154 guest rooms and 67 suites as part of its conversion to a condotel.

  • Turtle Bay Resort in 2006 finished a $70 million renovation that included the construction of a new ballroom.

  • Starwood is in the process of renovating the landmark Moana Surfrider. The project will include upgrades of its 793 guest rooms and lobby, as well as the addition of a spa in the Surfrider Tower and a Westin Kids Club.

  • Aqua Aloha Surf recently completed nearly $10 million in renovations and upgrades.

  • Outrigger Enterprises Group joined with partners to include a redevelopment of the Lewers Street area into high-end $535 million Beach Walk hotel, restaurant and retail complex that included getting rid of some old hotels, renovating others and redoing the area.

    BIG ISLAND

  • The 555-room Waikoloa Beach Marriott Resort & Spa recently completed a $50 million renovation, including a new Mandara Spa and a new ballroom.

  • Hilton Waikoloa Village invested more than $90 million in enhancements since 2005 with brand new amenities, updated accommodations, and increased services with $21 million spent on 1,240 guest rooms alone.

  • The old Kona Surf Hotel reopened in 2004 after $70 million in renovations as the Sheraton Keauhou Bay Resort & Spa.

    KAUA'I

  • Princeville Resort is about to be rebranded as Hawai'i's first and only St. Regis hotel and will undergo a $60 million renovation to substantially upgrade the 20-year-old property perched on the cliffs above Hanalei Bay.

  • The Kauai Beach Hotel & Resort became the Hilton Kauai Beach Resort after an $18 million renovation last year.

    MAUI

  • Wailea Beach Marriott Resort & Spa just completed a $60 million renovation that includes extensive room redesigns, a new Mandara Spa, a fitness center, new arrival experience in the lobby that features "individualized marble and wood registration pods."

  • Ritz-Carlton Kapalua just started a $95 million renovation project that will involve closing the hotel from July 2 to Dec. 15. The number of units will go from 548 to 470 as many one-bedroom units are expanded with second bedrooms. Kitchenettes are also being added to units.

  • The 463-room Royal Lahaina Resort completed a $30 million renovation in mid-February.

    LANA'I

  • Castle & Cooke completed $100 million in renovations of two resorts on Lana'i last year and rebranded them Four Seasons Hotels and Resorts.

    Source: Resort companies, Advertiser files

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    The iconic Royal Hawaiian Hotel will soon have a new entrance, a "fantasy swimming pool" complex to share with the Sheraton Waikiki and extensive room upgrades as a wave of hotel renovations continues.

    Kyoya Management Co. Ltd. is investing heavily in those two hotels and its two other Waikiki properties: the Moana Surfrider and the Princess Kaiulani.

    The $750 million investment includes:

  • $110 million for Royal Hawaiian guest rooms and grounds;

  • $80 million for Sheraton Waikiki rooms, corridors, suites and elevators;

  • Tens of millions to rebrand the Moana; and

  • Demolishing two lower towers of the Princess Kaiulani, replacing them with one taller tower and shorter retail buildings.

    The four Kyoya properties include more than 4,100 rooms on 21 acres, much of it beachfront. Ernest Nishizaki, executive vice president and chief operating officer of Kyoya, said work on the project will continue at least through 2011.

    Kyoya's project comes amid a boom in hotel renovation in Hawai'i with more than a dozen major projects in the pipeline or recently completed.

    The wave of renovations can be traced to a number of factors and includes a recent focus on more quality visitors instead of quantity, said Murray Towill, president of the Hawai'i Hotel & Lodging Association.

    There is also the competition from other warm-weather vacation destinations such as Mexico, Thailand and the Caribbean.

    Having enjoyed record-setting hotel bookings with occupancy that averaged above 70 percent statewide, the companies have the money to spend on reinvestment.

    "Given the success of recent years, people have more resources to be able to make re-investment," Towill said.

    PEER PRESSURE

    Hotels are also under pressure to improve when competitors a few doors down invest tens of millions to renovate. "When one company does it, more need to," Towill said.

    But Towill sees it as much demanded by customers, who want to do more things, explore new food, destinations and culture. "You have to continually improve your product," he said.

    A big change for the Royal Hawaiian will be a new entrance visible from Kalakaua Avenue. The current entrance is tucked off to the side of the Sheraton entrance with a left turn that leaves drivers uneasy about whether they're driving where they should. The vintage porte cochere clogs easily with cab and car traffic.

    The area surrounding the old entrance will be turned into a grass lawn with a lanai or stage. The new entrance would appear on the other side of the hotel, leaving the buildings intact.

    Kyoya's Nishizaki has a long history with the Royal Hawaiian. He first showed up regularly at the pink palace landmark in 1966 when he worked as a busboy in the Monarch Room. Walking the grounds, he calls many of the employees by name, checking in with them one moment and shaking a guest's hand the next.

    While he welcomes the new "improved" resort, he values the history: "It will always be called The Royal Hawaiian Hotel," he said. "Nothing is going to be taken down."

    Greg Dickhens, Kyoya executive vice president and senior adviser, points to changes at the Sheraton Waikiki that include redoing the entire front and pulling the front desk up where it's accessible from the entrance rather than hidden in the center of a retail area.

    Many recent hotel renovations feature extensive spas that offer massages and facials and other pampering. They spotlight fitness centers. They add new restaurants, flat-screen TVs and wireless Internet.

    Marriott will have spent close to $200 million over a three-year period on properties across the state and expects to spend more, said Ed Hubennette, Marriott International's vice president for Japan, Hawai'i and the South Pacific.

    "We've been very successful for several years," Hubennette said.

    His company just spent $50 million at the Waikoloa Beach Marriott Resort & Spa on the Big Island of Hawai'i and $78 million at Wailea on Maui and plans to spend $40 million on the Kaua'i Marriott next year, $18 million on the JW Marriott at Ko Olina and $25 million on the rooms at the Waikiki Marriott, he said.

    Hubennette called from the Kohala Coast resort to talk about the changes in style in hotels.

    "It's kind of the Pottery Barn/Crate & Barrel phenomenon," he said. Travelers who spend time and money to have designer kitchens at home will expect luxury.

    COMFIER, CLEANER LOOK

    While lobbies of old were more formal with limited seating, that model is disappearing. Hubennette said the renovations feature comfortable seating in areas that "you can hang out in, use your computer, read a book, get a coffee."

    Waikoloa general manager Rodney Ito said the new look is cleaner. "You don't see the traditional floral prints everywhere. It won't take away from nature," Ito said. "The view will be the attraction."

    Hubennette agrees that the wave of renovations is natural after years of boom and a smart business move in light of increased competition.

    "We really compete with the world as a product," Hubennette said. "Even though we have a very unique environment that doesn't exist anywhere else, we've got a culture that doesn't exist anywhere else and things that nobody can ever replicate or buy."

    Reach Robbie Dingeman at rdingeman@honoluluadvertiser.com.

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