Ed Hogan, founder of tour operator
Pleasant Holidays, in 1988 created Hawaiian Hotels & Resorts.
While Pleasant Holidays was sold to AAA of Southern California in
1998, the hotel chain, which by then had grown to seven properties,
remained a family business.
In the years that
followed, five of the properties were sold, leaving the chain with
the 441-room Royal Kona Resort on the Big Island and the 587-room
Royal Lahaina Resort in Kaanapali, Maui.
Today, Hawaiian
Hotels & Resorts is run by Ed Hogan's son, Gary Hogan, who
serves as president.
Once it was
decided to retain the two properties, the younger Hogan began
propertywide upgrades at both, seeking to better position them in a
changing market.
"Once we
considered the potential these properties offered, we decided to
keep them and improve them," Hogan said.
The result was
hundreds of millions in spending, starting with a remake of the
Royal Kona, which was part of a general hotel revival along the
Keauhou-Kailua-Kona coast.
A Hilton when it
first opened, the Royal Kona consists of three oceanfront towers
and nicely landscaped grounds. Rack rates range from $145 to
$225.
Rooms feature
quality decor and views of the ocean, colorful Kailua Bay and the
town of Kailua.
The Royal Kona is
a 10-minute walk from Kailua and its historical sites, selection of
restaurants, shops and pier, which offers daily departures of
snorkeling and sailing tours.
"Kona is a solid
three-star property now, which I think is the right fit for the
Kona market," said Hogan. "We're up significantly so far this year
in Kona, and I see a lot of potential with a number of niche
markets [including] active couples ... who have an interest in the
culture and like to explore on their own."
In addition to
the tasteful remodeling of guest rooms, the hotel recently added
signature restaurant Don the Beachcomber as well as a health club
and spa.
The new
facilities broaden the hotel's appeal, as does the new pool,
well-maintained grounds and proximity to the heart of
town.
On its way to four stars
Hogan has even
more ambitious plans for the Royal Lahaina, where rates range from
$350 to $550, although they are in the permitting
stages.
Hawaiian Hotels
and Resorts has just completed a $30 million remake of all 333
rooms in the resort's 12-story, beachfront Lahaina Bay Tower.
"We're using
top-end suppliers and designers in everything we're doing as we
improve these two properties," said Hogan.
The chain is
awaiting approval of plans to replace the low-rise cottages
adjacent to the Lahaina Bay Tower with 126 luxury
condominiums.
The planned one-,
two- and three-bedroom villas are part of a $330 million
redevelopment of the property designed to upgrade it to four-star
status.
Although sold to
individual buyers, many of the condo villas are likely to be added
to the hotel inventory.
The upgrade also
includes new pools and a 12,000-square-foot spa and fitness
center.
Protecting open
space may well be a key part of the Royal Lahaina's transition to
becoming a four-star resort.
"We have plenty
of open space with 27 acres, with the ocean on one side and the
fairways of the Royal Kaanapali's South Course on the other," said
Hogan. "We want to retain that, so we're building to only 42% of
what we're zoned for. When the villas are finished, that's
it."
Upgrades at the
Royal Lahaina are being phased in, he added.
While the spa and
some villas are set to open in 2009, the remainder will be
completed in 2010.
"We want to limit
the impact on guests," Hogan said.
As Hawaiian
Hotels & Resorts is a small company, establishing a market
presence means working closely with wholesalers who "do the
packaging for us," according to Hogan.
"We also put
specials out there for agents, and we support a lot of fam trips,"
he added. "We have to go out of our way to create a brand
consciousness, especially since we've upgraded both of our
properties so significantly."
On the other
hand, that also means hands-on ownership "where we can make fast
decisions that allow us to cater to our customers," he
said.
For more
information on the two resorts, call Hawaiian Hotels & Resorts
at (800) 222-5642 or visit www.hawaiihotels.com.
To contact reporter Allan Seiden, send e-mail to [email protected].