Posted by admin | Posted in Timeshare | Posted on 17-09-2009
Hawaiian Hospitality
The registration of arrivals by air of passengers and the increasing popularity of use by Time and resort residential developments have boosted recent interest in building new resorts in Hawaii. Exciting new concepts of family oriented resorts to the ultra – luxury are entering this market with plans to expand the breadth of service offerings for visitors to the island.
Topping the list is the recent announcement of the selection of Disney Resorts Ko Olina on the island of Oahu for its prime location only hotel construction is not associated with a theme park. His plans are to build a hotel of 800 units which includes the Disney Vacation Club timeshare concept that has more than 350,000 members. Disney paid $ 144 million to acquire the property, which is located on 21 acres overlooking the sea. This is a unique concept for Disney and a great opportunity for Hawaii to benefit from Disney's marketing and branding.
On the other side of the hotel development spectrum are the Starwood Capital Group plans to build a luxury resort Baccarat. Taking advantage of Baccarat crystal and jewelry luxury brand, The complex is expected to demolish the former Hotel Renaissance Wailea in Maui and replace it with 193 one to four bedrooms. All units have ocean views and include access to services personalized concierge. The architectural and interior design are being led by HKS Hill Glazier Studio and by world-renowned interior designer Yabu Pushelburg. The planned opening of the Wailea Baccarat is 2010.
Similarly, an affiliate of Montage Hotels and Resorts purchased 122 hectares on the northern coast of the island Kauai. Overlooking picturesque Hanalei Bay, Montage has no immediate plans, but intends to eventually building an ultra-luxury resort.
Of Timeshare Development
Most hotel and resort center on the luxury market as construction costs and rising prices of the land dictate the need for higher rates of hotel rooms. In fact, more complex developments have had to incorporate a timeshare / component fractional ownership, and complex residential component for supporting the development of a hotel.
Timeshare sales remain healthy, with projects in Waikiki, Ko Olina, Wailea, Maui, Kapalua, Waikoloa and Poipu on the drawing boards. Developers are taking advantage of the Hawaii brand and its unique appeal. In fact, many timeshare operators realize the importance of a location in Hawaii as a means of reinforcing its attractiveness for investors timesharing, many of which are willing to pay a premium for a holiday resort in Hawaii.
Hotel Transactions Record Volume
Hotel revenue and success race performance increased interest from institutional investors seeking prized resort properties for investment. The sales volume of real estate transactions trade has increased fivefold from $ 850 million to a 2005 record of $ 4.3 million. For 2007, hotel properties constituted the majority of the volume bringing the transaction total about $ 1.4 billion in activity. Topping the list two major properties – the Hyatt Regency Waikiki sold for $ 475 million and the Makena Resort on Maui sold for $ 575 million. In the market and expected to close in the short term are two Hotels and Resort Quest The Fairmont Orchid on the Big Island of Hawaii.
Hawaii Hotel Market Analytics
For the year-to-date October 2007, the report Hospitality Advisors LLC industry noted that the industry Hawaii's hospitality and continued to post solid RevPAR increased ADR. The average hotel rooms increased from $ 186.17 to $ 198.82 as RevPAR grew a statewide average of $ 150.24 to $ 151.33 last year. In general, Hawaii, Hotels ranked second in RevPAR growth only to New York. Percentage increase in the last year in average daily room rates of hotels exceeded the average price of luxury hotels and luxury brands by posting an increase of 11 per percent, compared to 5.5 percent and 7.7 percent respectively.
Despite these financial gains, occupancy rates fell last year. Since October 2007, the year to date occupancy rate of hotels in Hawaii decreased 80.7 percent to 76.1 percent. This decline coincides with the increased economic interests over the collapse of the residential housing appreciation rates, rising fuel costs and declining personal income found in the United States.
After growing to 7.5 million passenger arrivals for 2005, capacity constraints limited our growth in 2006 and 2007. Both the inventory of Hawaiian hotel and airline tickets reached a level close to capacity. After 4 solid years of robust growth in headcount air passenger arrival and spending of visitors, the hospitality industry in Hawaii posted only marginal growth in the last year.
Forecast for 2008
Investors are still in love with Hawaii hotels and resorts. The scarcity of holiday resorts worldwide first attracted investors institutions worldwide to Hawaii costs. Japanese, Korean, Chinese and Australian as well as North, Central and South American companies are scouring the islands investment opportunities tourist attraction. The recent purchases of Land Resort bodes well for increasing Hawaii's hotel inventory and allow for continued growth in air passenger arrivals and visitor spending.
Despite the isolated location Hawaii is not immune to the evils of high risk and credit stoked worries about a possible U.S. recession. Many transactions can be re-traded or be faced with increased state control and financial projections lenders. Investment sales transaction volume will decrease through 2008 as investors reappraise their asset allocations in real roots. The institutional investors willing to take this pause in activity by conducting thorough due diligence will find that hotels and resorts Hawaii tourism remain a lucrative investment opportunity.
About the Author:
Mark Bratton is President of Bratton Realty Advisers, Ltd., and exclusively contracted with Colliers Monroe Friedlander, Inc., Hawaii’s largest commercial real estate organization. Specializes in the sale of investment properties in Hawaii. Visit http://markbratton.com for more info.
Article Source: ArticlesBase.com – Hawaii Real Estate
