Probably not a real shocker, and some might already know this, but a recent report by Hawaii News Now business reporter Howard Dicus states that Hawaii has lost 8,000 hotel rooms since the year 2000. Why? Hotels have been converted into timeshares and condos. Take the Renaissance Ilikai Hotel, for example, which still operates as a hotel, but has had many of its units converted into condos. I believe Marriott used to offer these as Execustay condos, but this is no longer the case. Either way, the trend continues with Hitlon currently converting a former Outrigger property into another timeshare in Waikiki, with plans for yet another project to begin soon.
Agreed Californian. I was shocked when I saw the number! It would be interesting to see how Florida is doing... This continued trend in Hawaii concerns me, especially on Oahu, as new rooms aren't being built, yet inventory continues to decline in favor of condos and timeshares. Even new constructions like the Ritz-Carlton are condos and not a hotel. This will only make it harder and harder for people to vacation here. I wonder if the government realizes this, or if they're just looking the other way because its providing them income for the time being?
That does seem to be a big number, but it's for sure that demand drives the decision-makers. Hawaii was likely over-built in hotel rooms and/or under built in condos and timeshares. Either way, if there becomes a shortage in Hotel rooms, a massive building boom will follow. That's how life works. As far as how the Government feels about it, they get their cut no matter what, and for sure the vacationeers will continue to flock to the beautiful beaches of the islands.
After 911, the governor stated that all hotels were way down but timeshare people came anyway and were the only ones there. Hotels have always had ups and downs but timeshares are steady since someone has paid for the room. The indication that I got was that the government likes timeshares.
NathalieF. I got an internal server error when trying to post the above. I had to sign back in and then posted. It has continued to ask me to sign in when opening a new page often.
This is true, but the biggest concern for me is with Oahu. Waikiki has little to no room for development, especially in areas fronting Kalakaua Ave. The International Marketplace is being redeveloped, but the new hotel build will be a replacement for an existing property, albeit a little bigger. Then there's Kyo-ya's redevelopment plan for their Westin property, but that's on hold since others weren't happy with their plan.
But we shall see. One thing is for sure, Waikiki properties are lagging in renovations... with the exception, perhaps, of the Sheraton Waikiki and the Royal Hawaiian.
This is true, but for the island of Oahu at least, may not be possible. Ko Olina has one plot left to develop, which could be subdivided into 2-3 small hotels, but realistically, I see it being used for another massive hotel and/or timeshare development. Some even think Disney will somehow expand Aulani into that adjacent lot, but I highly doubt that!
North Shore residents are adamantly opposed to more hotels on that part of the island and have stopped Turtle Bay from expanding it's resort. Marriott is supposed to have a new CY open in Lai'e, though when that will be is anyone's guess. It was supposed to open next year, but ground breaking hasn't occurred yet, so that seems unlikely.
Kahala has no space beyond the venerable Kahala Hotel (aka Kahala Mandarin, Kahala Hilton).
Any further development will likely take place on neighbor islands, but residents have become more and more opposed to further development. I do know Mr. Ellison plans to add a third Four Seasons to Lanai, but even that is being met with much opposition.