Aqua unleashes wave of condotel upgrades in Waikiki

Aqua Hotels and Resorts is embarking on a comprehensive upgrade to its inventory and marketing efforts. The chain has grown to nine properties in Waikiki, nearly doubling its mix of hotel and hotel-condominium accommodations since the start of the year.

Under the direction of CEO and founder Mike Paulin and vice president of marketing and guest services Beth Churchill, Aqua has revamped its image with a new logo and a new marketing tag line designed to establish a distinctive, hip identity.

Aqua markets the "condotel" properties it manages, including four hotels and five condominiums, under two sub-brands. The chain promotes three -- Aqua Aloha Surf, Aqua Bamboo & Spa and Aqua Palms & Spa -- as "Aqua Boutique" hotels. Meanwhile, its "Aqua Lite" hotels include the Aqua Continental, Aqua Coral Reef, Aqua Kuhio Village, Aqua Marina, Ocean Tower Hotel at Waikiki Beach and the Aqua Hawaii Polo Inn.

On a high-tech footing from its inception, Aqua has partnered with hotel technology firm TravelClick to develop integrated marketing systems to handle the company's growing inventory. That partnership began in July, along with the debut of the company's new Web site and suite of online booking tools.

"We feel [TravelClick is] the industry leader in distribution strategies," said Churchill.

Aqua also has increased the size of its staff, creating new positions to ensure smooth operations as the company prepares for the debut of its third, upmarket division. Called Aqua Elite, the division will join the midmarket-to-upscale Aqua Boutique and budget Aqua Lite property categories toward the end of the year.

The chain's Boutique inventory is going to grow considerably in the next six months, as newly renovated Aqua Lite properties are upgraded and elevated to Aqua Boutique status. The process will start with the Oct. 1 reopening of the Aqua Coral Reef as the Aqua Waikiki Wave, followed by the renovation and upgrade in December of the Aqua Hawaii Polo Inn and the rebirth of what's now the Aqua Continental as the Aqua Essence in early 2007.

That will leave only two properties -- the Aqua Kuhio Village and the Aqua Marina -- marketed as Aqua Lite. Churchill said she hopes to remedy that with the addition of budget condotel inventory.

"We realized in 2005 that the market in Waikiki, where all of our properties are located, was heading for a significant change, in part because of a reduction in inventory and in part due to demographic changes and Hawaii's evolving customer base," she said.

"The perception of Waikiki as an urban resort, which some considered a negative, is now an asset," Churchill added. "Waikiki has real appeal to a new generation of visitors. We decided to tap into that with the marketing theme, 'Beach Life, Urban Vibe,' and by upgrading our properties to suit expectations, offering them something that's a bit more cutting-edge." 

That means taking aim at Generation X, a market Churchill defined as consumers aged 25 to 45. With that in mind, renovations have a look that Churchill described as "stylish, exciting and contemporary."

It translates to not only trendier decor but also in-room amenities such as flat-screen TVs and wireless communications links and high-end facilities such as the spas at the Aqua Bamboo and the Aqua Palms, an AAA Three Diamond property Churchill considers the chain's flagship.

According to Churchill, Aqua operates according to seven principles it calls "the seven pillars of the Aqua brand."

"The pillars define and guide our marketing strategy," she said. "They focus on amenities and value, which is why 'Pampering Made Affordable' is one of our tag lines. We want our guests to know their satisfaction is a real priority for us."

The pillars are:

Rates rising

Rack rates at Aqua properties are upward bound for 2007.

That's because Aqua's own property upgrades are largely complete and Waikiki's overall available hotel room count has been reduced by more than 2,500 units in the past 18 months, as properties have converted to timeshare and condominium ownership or were demolished as part of the ongoing remake of Waikiki.

At Aqua Lite properties, which Churchill described as "comfortable, friendly and affordable," that will mean increases of 5% to 10% on this year's nightly rates of $110 to $190.

Meanwhile, Aqua's Boutique property rates, which now range from $190 to $310 per night, will increase 5% to 21%.

When the company's first Elite property, the 70-room Hotel Renew, opens in early 2007, it will add inventory priced from $300 to $695 per night.

The Hotel Renew is being converted from the Ocean Tower Hotel at Waikiki Beach, an Aqua Lite property.

Packages are being developed for a debut next year, which Churchill described as off to a promising start, with prices up and demand for limited inventory strong.

At present, about 25% of Aqua's bookings come from travel agents, a number Churchill said she would like to grow.

To further that goal, on Sept. 1 Aqua will launch Get The Point, its first agent-oriented loyalty program, which rewards agent bookings with points that can be redeemed for spa certificates and free nights. The chain also offers agents best-price guarantees for Web site bookings. 

"We're using this fall as a soft opening, as we prepare for what we're expecting to be a strong winter season, with much that's new," said Churchill. "We hope to see more agents working with us as Aqua continues to grow."

For information on Aqua Hotels and Resort, visit www.aquaresorts.com or call (866) 406-2782.

To contact reporter Allan Seiden, send e-mail to [email protected].