Aqua Hotels and Resorts chain continues to grow

HONOLULU -- In August 2001, hotelier/entrepreneur Mike Paulin leased two former Outrigger Hotels and Resorts properties, the Ohana Ala Wai Tower and the Ohana Ala Wai Terrace, and fused them into the Aqua Marina, the first condominium-hotel in what would become the new Aqua Hotels and Resorts chain.

Four-and-a-half years later, the Aqua portfolio has grown to five condo-hotel properties in Honolulu. The properties are Aqua Marina, Aqua Kuhio Village, Aqua Bamboo and Spa, Aqua Palms and Aqua Aloha Surf.

In addition, the chain is developing three hotel categories: Aqua Boutiques, the moderately priced Aqua Lite and a luxury category tentatively named Aqua Elite.

Aqua Marina would be placed in the Aqua Lite category along with Kuhio Village until renovations are completed, at which point it would be recategorized as Aqua Boutique, along with Palms, Bamboo and Aloha Surf.

A sixth property, a 72-unit annex of the former ResortQuest Waikiki Beach, will be in the Aqua Boutique fold and renamed the Aqua Ocean Tower.

It will be the first boutique hotel with a luxury spa completely geared towards the Generation Xers, Paulin said.

The property will offer romance packages that will include dual spa treatments but will also cater to the 25-to-45 age group that might be staying at the condo-hotel for business purposes, Paulin said.

Paulin claims that Gen-X clients demand aesthetically pleasing design along with  functionality, comfort and Internet connectivity. They dont yet have a category of hotels catering to all of their needs, he added.

No other off-the-beach hotel is offering free Internet, spa, breakfast and a comfortable environment for half-off the beach resort prices, Paulin said.

Paulin got his start in the Hawaiian hotel business when he founded Colony Hotels in 1971, which eventually grew into Aston Hotels. He launched Marc Resorts, which he later sold to Sunterra Resorts.

A noncompete clause kept him on what he described as a four-year vacation, after which he leased the Aqua Marina, where each unit was sold as a condominium to individual buyers who had the option of joining a rental pool run by Paulins firm.

In December 2001, Paulin acquired a management contract for a property that would become the Aqua Bamboo and Spa less than three years later. All 96 units were sold within the first month of Aquas management.

As those first properties sold out, developers and hoteliers began to take notice: The condo-hotel model was working.

At the start of 2004, GECC Capital, owner of the Kuhio Village, brought in Paulin to convert all units to condominiums and handed him the management reins.

That February, the Aston Waikiki Parkside Hotel closed, eventually reopening in August 2005 as the Aqua Palms. And in December 2004, Paulin was asked to run the former Aston Aloha Surf as an Aqua-branded property by new owners Carmel Partners.

Aquas condo units rent for anywhere between $120 and $850 per night.

Today, Paulin manages the interests of 1,000 owners of condominiums in five properties -- where 95% of units are available for rent -- according to what he calls Aquas seven pillars:

In addition, if asked for assistance by guests, Aqua employees must stay with the guest, in person or on the phone, until the request is fulfilled.

I do get a few 2 a.m. phone calls from guests, and I make sure their requests are fulfilled, said Paulin. I dont want any issue getting back to travel agents before we have had the opportunity to correct the situation. Every one of my employees has to subscribe to the same commandment.

As to whether Aqua has plans to extend beyond Waikiki or even Oahu, Paulin said he is cautious.

We were asked to manage properties on the Big Island and Kauai, but we didnt see them as a perfect fit, he said. We are not in a rush.

Paulin said Aqua is focused on burnishing services and amenities at its existing condo-hotels, to better parallel a visitors experience to that of what they have at their home ... with the perks of an adventurous and stimulating destination such as Hawaii.

For more information, visit www.aquaresorts.com or call (808) 943-9291.

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