Hyatt is said to be closing in on the purchase of competitor Starwood Hotels. This could have a significant impact on Hawaii visitors and specifically on Hawaii deals on hotels. On the other hand, we think this may be good news for vacation rentals. Here’s why.
Hyatt currently has only five hotel locations in Hawaii. Their upscale prices in the off season currently start at $189/night. Properties include the Grand Hyatt on Kauai, the Andaz and Hyatt Regency on Maui, plus the Hyatt Regency and Hyatt Place on Oahu.
Starwood has significantly more inventory with eleven properties and a greater variety of price points in Hawaii. Off season currently starts at $119 ($149/night plus every 5th night free). Their properties are (Oahu) Sheraton Waikiki Royal Hawaiian, Moana Surfrider and the Sheraton Princess Kaiulani, (Maui) the Sheraton Maui, the Westin Maui and the Westin Kaanapali, (Kauai) Sheraton Kauai, St. Regis Princeville and Westin Princeville, and (Big Island) the Sheraton Kona.
With this likely upcoming consolidation, one company will be in control of  “yield management” for all 16 locations. Reading between the lines, there will be more ability to control pricing to their advantage. That’s not good for Hawaii deals and especially those in Honolulu, where the majority of these hotels are located.
In addition, we just learned that Aqua-Aston Hotels is planning on acquiring the Starwood Hotels and Resorts vacation ownership division, which operates some of the largest time-share properties in Hawaii. So we can expect a lot of changes coming to that part of Hawaii accommodations as well.
Vacation rentals are looking ever better as far as we see it. Anytime you have more than a few nights in one location, vacation rentals offer great value. You can stay at the beach in a home or condo and vacation in Hawaii more like a local. Split the cost with friends and book a larger rental. With lots of room to spread out and typically significantly more value for your money, Hawaii vacation rentals are in great demand.
What’s your take on the next wave of consolidation in travel and how it will impact your Hawaii vacation?
I spent the past 4 months in Waikiki, and from my standpoint I see a good deal of poor governmental management, esp. on O’ahu.
If this is endemic, sooner or later the discerning traveling public may say “No value here”, dismiss the marketing effort of the Hawai’i Tourism Bureau and, with the increase in costs both to arrive and stay there, will reorient their attention toward the Caribbean and Central America, as possessing real value for all of us who represent the 99%ers ..
For the traveller, although the quality control will be up, the family traveller will once again be hit in the pocketbook. Their brand should expect traveller interest –whether positive or negative will depend upon their behaviour. As a Starwood member, I aready turn to websites such as VRBO and Homeaway to combat price. The buyer is becoming more savy–it will be interesting to see the reaction of both traveller and the controlling company.
Off course hotel prices will increase!! Consolidations (which result in LESS competition) always result in price hikes. :0(
Look at the airlines – perfect example of LESS means MORE COST per traveler and MORE profit for the airlines. We enjoy less in the way of services and pay far more for so much less. Remember the days when we were served a full meal in economy class? It has gone steadily downhill since those good ole days. Now they try to make us FEEL GOOD about paying less for no frills travel – Who is paying LESS? We sure aren’t.
Sure, vacation rentals are ok now – but when hotel rates increase – then the vacation rental owners will feel like they can raise their prices too. So, ultimately, it is the ‘average Joe’ visitor who is hurt. For those in the upper income bracket – none of this makes a bit of difference – it won’t make or break their trip.
For a while, we were able to come every other year – back when fares could be had from the Midwest @ $500 pp ROUNDTRIP. Those days are long gone. Our last visit to Hawaii was in 2009!!
I have worked part time for an entire year to pay for our trip next year. Airfares are now double, condo rental is up, car rental is double. Airfares are so high – supposedly due to increases in fuel costs. Phooey – oil is $50 a barrel or less. Yet airfare never comes down. Can you imagine the profits the airlines are raking in now that they have cut flights, filled their planes to the brim, crowded in more seats and cut back on peanuts? We do not live in a Major Market area of the country – haven’t seen any deals out of STL in years. So, we bit the bullet for one last trip.
For what its worth, Startwood has sent out an email this week to its owners stating that Starwood Vacation Ownership will be acquired by Interval Leisure Group (ILG) and become a wholly owned subsidiary of ILG.
I agree that prices could take a hit with the merger and that, in general, consolidation is not a good thing. But Hyatt is so far superior to Starwood as a vacation destination and the negative impact of vacation rentals on the resident neighborhood experience so serious, that I believe it is irresponsible to encourage more rentals of these types of units before the fact and how it plays out. Vacation rentals are ruining the living experience on all islands and creating a serious shortage of long term rental availablity. Please factor that into your articles.
Hi David,
There are thousands of legitimate, zoned and authorized vacation rentals in Hawaii. These add greatly to the Hawaii travel experience for a large percentage of our visitors. They also add a huge amount of money to our state’s tax fund.
Aloha.
Will this merger affect the Hyatt and Sheraton timeshares too?
Hi Koli,
Thanks for mentioning that. As a matter of fact, yes. Aqua-Aston is planning on acquiring the Starwood Hotels and Resorts vacation ownership division, which operates some of the largest time-share properties in Hawaii. So lot sof changes coming to that part as well.
Aloha.
Florida-based Interval Leisure Group, the parent of Aqua-Aston is acquiring the vacation ownership division.
When you say that vacation rentals are looking even better, are you saying that hotel room rates will increase because of this proposed merger and therefore vacation properties by owner will offer even better values? Thank you in advance for clarifying…Mahalo
Hi Dave.
Higher prices will result. “Reading between the lines, there will be more ability to control pricing to their advantage.”
Aloha
Actually, as a starwood timeshare owner I just received a notice yesterday stating that Interval Leisure Group (ILG) purchased the timeshare operations.