HONOLULU--Outrigger Hotels & Resorts plans a $20 million
renovation of the 545-room Royal Waikoloan on the Big Island's
Outrigger Enterprises Inc., parent of the hotel chain, completed
the purchase of the property in late September. According to David
Carey, Outrigger Hotels president, proposals are being sought from
architects, and work, expected to take 18 months, is planned to
begin next March.
Tentative plans call for a new entryway and porte cochere, the
renovation of all rooms, and a remodeling of the pool area as major
projects. "We are committed to making the Royal Waikoloan one of
the Big Island's premier hotels," Carey said.
After the renovation, the property will be renamed Outrigger
Waikoloa Beach Resort. Carey added that occupancy has increased at
the 15-acre property this year. He described the purchase
transition as "seamless," with no change in hotel management.
Outrigger has managed the property since 1991 and had a 31%
interest in TAAS Associates, the owning partnership, before the
purchase. The purchase ends uncertainty at the 17-year-old
property, which has seen previous purchase deals fall through.
Despite its previous ownership interest, Outrigger Hotels had been
on a month-to-month management contract since April 1996.
With a sale expected, Outrigger excluded the property from its
1997 package and other programs, only to include them again for
1998. Richard Kelley, Outrigger Enterprises chairman, said
Outrigger was always a willing buyer but previously could not reach
an agreement with the majority owners.
The purchase, he said, reaffirms Outrigger's commitment to
Hawaii. "For the first time in recent history a Hawaii company has
bought a major local hotel, and ownership is not going overseas,"
he said. Royal Waikoloan is part of the 500-acre Waikoloa Beach
Resort, which has one other hotel--the 1,241-room Hilton Waikoloa
The beachfront hotel has two restaurants, a pool snack bar and
lobby bar, a fitness center, meeting facilities and shops. It also
has beach and ocean activities, Hawaiian cultural programs and
Hawaiian archaeological sites. The hotel is the only
moderate-category hotel at the Kohala Coast destination resorts.
Rack rates range from $140 for gardenview to $275 for Royal Cabana
Club and will remain the same in 1999.