Fairmont Enters Hawaii, Marriott Builds Up Inventory - 2001-02-26

<B>Fairmont Enters Hawaii, Marriott Builds Up Inventory</B>

By Judy Jacobs

Several hotel chains are making moves to strengthen their presence in Hawaii. The entry of Fairmont Hotels & Resorts, the addition of another Marriott hotel on Oahu and the efforts of Aston to tap the meeting and incentive market will give planners more brand options to choose from in Hawaii.

Last month, Canadian Pacific Resorts, parent company of Fairmont Hotels & Resorts, acquired the Kea Lani Resort in Wailea, Maui, and will reflag it The Fairmont Kea Lani Maui during the second quarter. Operated as an independent property since it opened in 1991 by Landmark Hotels, the 413-suite, 37-villa property has become a favorite with incentive and meeting groups, attracted by its spas, private villas, three swimming pools and 30,000 square feet of meeting and function space.

Although successful as an independent, being part of Fairmont puts the Kea Lani in a new league as far as groups are concerned. "It's a great move," said Lesli Farry, director of group sales. "It opens up opportunities for groups that prefer to use a chain property. It also gives Fairmont's established customers an alternative for incentive programs that do East Coast, West Coast rotations."

For Fairmont, a property in Hawaii is part of its expansion plans. "The Fairmont brand has been in a growth mode. There are certain resort areas where we thought we needed a presence. Hawaii is one of the them," said Ann Layton, the company's vice president of public affairs. "If there's another opportunity in Hawaii, we might be interested; it's a popular destination."

Meanwhile, Marriott--which, in less than a year and a half has gone from no properties on Oahu to three today--is strengthening its position on Oahu with the addition of the Hawaiian Regent. The company purchased the hotel in November and rebranded it the Waikiki Beach Marriott Resort. Marriott plans to begin a year-long, more than $50 million renovation in May that will cover all guest rooms and meeting rooms.

"Our new hotel is bringing 1,304 rooms to the citywide inventory," said Paul Chicoine, area director of market sales for Marriott & Renaissance Resorts Hawaii. The Waikiki Beach Marriott, along with the J.W. Marriott Ihilani Resort & Spa on Oahu's west coast are part of the company's new group sales center efforts, which include five of Marriott's six hotels in Hawaii. The sixth hotel, the Renaissance Ilikai, stands alone.

"We are a franchise property, and the owners wanted a separate sales unit," said Alivin Wong, the hotel's director of hotel sales.

Marriott took over management of the property last year and is in the midst of a $25 million to $30 million renovation. It plans to complete the ballroom, which at 50,000 square feet is the third largest in Waikiki, by month's end and in May will begin on the 783 rooms, all of which will be gutted and totally redone.

The improvements are part of the hotel's plans to increase its appeal to the meetings and incentives market. "The MCI market is 20 percent of our business, but we'd like to get it up to 30 percent," Wong said. The Renaissance Ilikai can handle groups of up to 350 rooms. In addition to improving its physical plant, the hotel is upgrading its food and beverage service and recently hired a new F&B director and new executive chef.

Meanwhile, Aston Hotels & Resorts, best known as an operator of condominium properties, is pushing the meetings and incentives market at its Keahou Beach Resort on the Kona Coast of the Big Island. Since reopening in the spring of 1999 after a $15 million total renovation that closed it down for nearly a year, the property has been in the process of repositioning itself.

"When the hotel reopened, it didn't pay much attention to the group market because Aston was never in that market before," said Mark McGuffie, the resort's manager. "But we've taken the group market from 4,500 room nights the first year we reopened, to 10,000 last year and 17,000 in 2001." Next year, he is aiming for 23,000 room nights.