Hawaii Convention Center Spurs Property Renovations

<H1> Hawaii Convention Center Spurs Property Renovations</H1>By Maria Lenhart

<B>W</B>hen the first delegates pick up their name badges at the Hawaii Convention Center two years from now, they won't just be getting a new meetings venue. They'll also be getting a new and improved meetings destination.

The long-awaited convention center now rising rapidly on the banks of the Ala Wai Canal is proving to be an unprecedented catalyst for change in Waikiki, spawning everything from hotel upgrades to more green spaces to new restaurants and shops.

Parcels of land adjacent to the convention center are being scooped up by developers, causing widespread speculation that this once-lackluster area on the edge of Waikiki, for years best known as the site of the Aloha Motors car dealership, soon will come alive as a hub for shopping, dining and entertainment.

"There's already been a shift in focus away from the Diamond Head side of Waikiki to this part of town-there's much more to see and do," said Bernie Caalim, spokeswoman for the Hilton Hawaiian Village, located a few blocks from the convention center site. Caalim cited the Aloha Tower Marketplace, a waterfront restaurant and retail complex that opened in late 1994 next to the historic Aloha Tower cruise ship terminal.

"The convention center is facilitating a much-needed link between downtown Honolulu and Waikiki," said Rick Chapman, director of sales for the Hawaii Visitors Bureau. "There's a connecting of the two areas that will give people an exciting Honolulu-Waikiki experience. It's similar to what has happened already in places like San Diego and Philadelphia, where the convention centers proved to be a boon for the surrounding areas."

While convention centers also tend to encourage hotel growth, there are not yet any plans for an end to the current moratorium on new hotel construction in Waikiki, despite the fact that occupancies in January and February soared above 90 percent, the highest level in six years. Instead, community groups are looking at another way to serve the needs of convention delegates: the conversion of budget hotels into first-class properties.

This month, the Honolulu City Council is scheduled to vote on a measure providing economic incentives for Waikiki landowners who make improvements in the district. According to David Dodge, president of the Waikiki Improvement Association, the plan's main purpose is to prompt hotel renovation.

"A lot of hotel construction in Waikiki dates from the 1960s and 1970s and is really outdated," Dodge said. "We're advocating larger guest rooms and nicer lobbies. In particular, we want budget hotels to upgrade."

Among hotel companies that may make some changes is Outrigger Hotels & Resorts, which operates 23 hotels in Waikiki ranging from luxury to tourist class. "We're very likely to be upgrading some of our lower-end hotels during the next few years," said Outrigger chief executive Perry Sorenson. "We have quite a few hotels near the convention center that stand to benefit from that market."

The hotel nearest the convention center, the Ala Moana Hotel, soon will embark on a renovation and service upgrade designed to better serve delegates from the convention center, located just a block away. Along with a general refurbishment of its 1,200 guest rooms, the Radisson-affiliated hotel is installing a Lodging Management Systems software program designed to make its reservation and checkin process more efficient.

But despite the hotel's proximity to the convention center and its willingness to commit room blocks up to 500, director of sales Marty Milan does not expect the Ala Moana to serve as a convention headquarters hotel. "We have just 15,000 square feet of meeting space, which is not enough for a headquarters hotel; the Hilton Hawaiian Village and Sheraton Waikiki are better equipped in that regard," she said. "Our strongest customer base will continue to be the corporate market."

However, if convention business warrants it, the Ala Moana might consider an expansion. "We could possibly have a vertical expansion of about 300 rooms added to one of our existing towers," Milan said.

Another hotel near the convention center, the 800-room Ilikai Nikko Hotel Waikiki, also is making improvements. The hotel is adding services for business travelers, including a new lounge serving complimentary continental breakfast and two executive-level floors that will come with an office amenity package offering pens, tape and other business supplies.

"We're sitting pretty," said Ilikai sales director Mina Dodds, referring to the convention center a few blocks away. "Our meeting business is at about 18 percent, but convention business definitely will drive that up."

Also sprucing up is the Sheraton Waikiki, which is embarking this year on a $20 million renovation that will redecorate and add new amenities to the hotel's meeting space, including a special-effects lighting system for the grand ballroom and updated audiovisual features for the boardrooms. Other focuses of the renovation include the lobby, guest-room corridors, executive suites and restaurants.

Hotel renovation is far from the only factor changing the face of Waikiki: The Waikiki Improvement Association is studying a new form of public transportation. "Traffic congestion has always been a major problem in Waikiki, and there are fears that the convention center will make it worse," said Dodge. "An ad hoc committee is looking at solutions, which could involve a new shuttle system within Waikiki and peripheral parking lots outside the district to limit the number of cars."

Another upcoming project backed by the Waikiki Improvement Association will be a dredging and landscaping of the Ala Wai Canal, a two-mile-long waterway that runs along the back edge of Waikiki and past the front door of the convention center. Along with becoming cleaner and safe for kayaking and other water sports, the waterway will be lined with new park areas and a bike path.

Beyond that, WIA is continuing with a long-running objective to "restore a sense of Hawaiiness" to Waikiki, Dodge said. A torch-lighting and hula ceremony on weekend nights at Kuhio Beach Park and strolling Hawaiian musicians along Kalakaua Avenue already have become part of the scene, while the development of a Waikiki Historic Trail with markers noting important sites and landmarks is in the works.

Such touches are more than window dressing. They're essential if Waikiki is to compete with other resort destinations for business, whether convention or leisure, Dodge believes. "We can't just be a sand-and-surf destination," he said.