Hospitality is big business in Hawaii. Traditionally, the established players (Marriott, Starwood, Hilton) ruled the scene, blended with a smattering of local hotel groups and independent operations. But Hawaii hotel management is evolving thanks to a relative newcomer, which is now poised to become a dominant player.
Even before COVID, Hawaii’s hotel industry was undergoing major changes. Part of this is because property ownership began shifting, as did ownership of the various development and management companies in Hawaii. For example, locally-based Aqua and Aston merged 2013, and then was acquired by Marriott Vacations Worldwide, which itself was spun off of Marriott International, though they’re still affiliated.
Anyway, if you know anything about the hospitality industry, you’d know how crazy things can get. With hotels, you have owners, operators/management companies, and brand affiliations. Sometimes, all three of these are the same, but sometimes these three things are all separate entities.This is why your experiences with the same brand – say, Sheraton – can be so different at properties under the same flag in one city.
For example, at one time, Outrigger Hotels & Resorts was the management company of the Courtyard by Marriott Waikiki Beach. Now? It’s someone else, and since Hawaii hotel management is evolving, that someone is poised to become the dominant management firm in the islands.
Hawaii Hotel Management is Evolving
Speaking of the Courtyard by Marriott Waikiki Beach, they’re kind of central to the our discussion on how Hawaii hotel management is evolving. You see, back in 2011, management of the property changed to a relative newcomer in the industry – Highgate. Soon after, Highgate purchased the incredibly dated Pacific Beach Hotel, kicking off its first owned, managed, and branded property in the state. Of course, that property is now known as the Alohilani Resort.
In the beginning, their growth was, understandably, slow. That’s even with the success they enjoyed with the Alohilani. Other properties they became involved in at the time were the Park Shore Waikiki and the Ambassador Waikiki, which now falls under their Romer brand. However, since then, they’ve grown their collection from these initial four properties to a staggering 18 properties. And, let me tell you, even if you’ve never heard of Highgate, I guarantee you’ve stayed in or at least heard of their properties.
Today, their holdings cover a broad spectrum of hotel classes, including the Pagoda Hotel near Ala Moana Center, TwinFin (formerly the Aston Waikiki Beach), Hilton Garden Inn Waikiki Beach, Royal Hawaiian, Hilton Garden Inn Kauai, Best Western The Plaza Hotel, Airport Honolulu Hotel, and the Inn at Schofield Barracks, among others. Crazy, right? Well, things are getting even crazier.
Highgate’s Newest Projects
Lately, Oahu has seen a surge of new hotel development. Most of these are occurring outside of Waikiki, as demand continues to increase for more reasonable lodging for business travelers and government workers. And, somehow, most of the high-profile ones involve Highgate, including the AC Hotel Honolulu by Marriott and the Renaissance Honolulu Hotel & Spa.
Then, there’s Hawaii’s first adult-only hotel, which is Highgate’s conversion of the former Pearl Waikiki Hotel to the Romer House Waikiki Hotel. At the same time, they’re also getting ready to assume management of the Kaimana Beach Hotel, which will involve extensive renovations on a hotel that only recently saw itself transformed from something dated and neglected to a more modern option.
That’s already an impressive portfolio of properties, right? But as Hawaii hotel management is evolving, Highgate is poised to add even more to its line-up. In fact, between now and 2028, they’ll add at least 10 more hotels to their operations. But what’s even more intriguing are some high-profile developments that they’ve become involved with.
Two Firsts and the Revitalization of an Icon
In the Honolulu Star-Advertiser’s profile of Highgate and how they’re leading the charge as Hawaii hotel management is evolving, they briefly mentioned two projects that caught my eye. The first is what will be Hawaii’s first Hyatt Unbound Collection property. Specifically, it’ll be the 240-room hotel being developed in Honolulu’s Chinatown. It won’t be deep in Chinatown – rather, it’ll be right on Nimitz Highway a couple blocks down from a future Skyline rail station.
As you may recall, the first Hyatt Unbound property in Hawaii was actually supposed to be Kauai’s Coco Palms Hotel. Its long, tortured, and controversial redevelopment process has gone through many iterations, including under the Hyatt flag. But, now, it’s apparently going to be a IHG – specifically, a Kimpton. That’s if the project does finally come to fruition under its current development plan, though current plans place the opening in 2026.
Hawaii Hotel Management is Evolving, Final Thoughts
It’s quite impressive. In four short years, Highgate will be involved 28 hotels on Kauai, Oahu, and Maui, including a new construction they’re working on in Kihei, Maui. To put it into perspective, Marriott has 40 properties across the entire state, a growing number of which are managed by Highgate. That’s impressive.
Now, this post isn’t meant to promote Highgate. Rather, I’m writing this to highlight just how complex the hotel industry is. Plus, you know, the information about two of their upcoming projects is pretty juicy.