Destination Resorts plans to manage 98 new units

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estination Resorts Hawaii (DRH), the condominium and vacation rental management company that operates 350 units in six separate villages in western Maui's Wailea and Makena area, is negotiating the management of an additional 98 units being built between the Grand Wailea and the Outrigger properties.

The units, called the Wailea Beach Villas, will boast an average sale price of $2.6 million and rent for $200 to $1,200 per night.

DRH executive vice president Maynard Torchiana said the image of the Wailea resorts has contributed to a leap in home and condo values in the area and a rise in hotel room rates.

None of this surprises Torchiana. "Our majority demographic is between 45 and 55 years old and has children. These people want all the luxuries of a Fairmont or Ritz-Carlton hotel with the perks of a private condominium. Luckily, we are able to provide them with both those things," he said.

Operating out of a storefront office in the Shops at Wailea, DRH offers top-of-the-line concierge service to all guests.

Meals can be catered to individual units, and pre-arranged shopping ensures that refrigerators and pantries are stocked with guests' favorite foods, snacks and breakfast items.

Trends

Torchiana's high-end clients, consistent with current travel trends, are booking closer to departure date than ever before.

Torchiana said 15% of business is booked 30 days or fewer before arrival; the previous norm was less than 5%. He said it makes trend predictions difficult, and he blames the airlines: "People find that the longer you wait, the cheaper the flight will be."

As for online booking, Torchiana called it "a double-edged sword."

"It has led to more research and an educated consumer, but it also has paved the way for too much variation in pricing on similar inventory."

Torchiana said DRH tends to release the more remote off-the-beach and golf properties to Orbitz or Expedia when it has to, but not the beachfront units.

"It makes sense to have them remain unfilled and available to our high-end clients than to cut the rates and fill them," he said.

That decision should warm the hearts of agents.

"We want to keep the travel agent in business," Torchiana said, adding that he deals mostly with tour operators and top agents but has been marketing smaller agencies, as well.

"We are constantly adding incentive programs in addition to commissions," he said.

Resorts, rates and activities

DRH's villages are the Wailea Ekolu Village, Wailea Grand Champions Villas, the Wailea Ekahi Village, the Wailea Elua Village, the Polo Beach Club and the Makena Surf.

The Makena Surf and Elua Village are the higher-end properties. Both have five-night minimums. Makena's nightly rates range from a two-bedroom oceanfront for $545 to a three-bedroom deluxe unit for $800.

Nightly rates at the Elua Village start at $250 for a one-bedroom unit and top out at $840 for a three-bedroom oceanfront.

The other properties have three-night minimums. The least expensive, the Ekahi, rents studios for $190 per night.

Commission is 10%.

Add-on packages for 2004 that were built with travel agents in mind include the Hana Cave-Quest Adventure, which entails a limo-van tour to Hana and a hike down-under in the Ka'eleku Cavern; a gourmet beachside lunch; and a kayak adventure and snorkel experience.

The Paniolo Journey of Discovery features a limo-van tour of Haleakala Crater and Maui's upcountry; a 90-minute horseback ride at Thompson Ranch in Kula; lunch and shopping in Makawao; and a snorkel beach kit for one person (includes a snorkel set, beach mat, cooler and snorkel map).

Prices are $250 per person. For more information on these packages, e-mail [email protected].

DRH is managed by Denver-based Destination Hotels & Resorts. Agents can access Destination Hotels & Resorts properties on the GDS via the company's chain code DN or at www.destinationhotels.com.

To contact the reporter who wrote this story, send e-mail to [email protected] .

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