Another Waikiki Hotel Faces Strike Threat As Kauai Workers Win Deal

This week, Sheraton Kauai workers joined seven other Hawaii properties in ratifying new contracts, following months of labor unrest across the state’s hotel industry. Represented by UNITE HERE Local 5, thousands of workers at properties such as the Sheraton Waikiki, Royal Hawaiian, and Hilton Hawaiian Village have secured agreements addressing wage increases, better workloads, and job security.

The Sheraton Kauai settlement marks a significant milestone, yet one major Waikiki hotel remains notably absent from this wave of progress.

Is Hyatt Regency Waikiki the next Hawaii hotel shoe to drop.

The Hyatt Regency Waikiki, with its 1,230 rooms and status as one of the island’s largest and most iconic hotels, remains without a contract for its more than 500 employees. While other hotels have finalized agreements, the Hyatt’s unresolved status leaves it visibly vulnerable to a potential strike without notice at a critical time, as Hawaii approaches its peak holiday season.

This vulnerability echoes concerns raised in Beat of Hawaii’s recent article, where we asked, “Where will the next shoe drop?” The Hyatt now stands in the crosshairs as one of the last major properties yet to meet union demands, raising questions about whether its management can avoid the labor unrest that disrupted other hotels earlier this year.

A Warning from the Hilton Hawaiian Village Strike.

The recently ended 40-day strike at Hilton Hawaiian Village earlier this year serves as a cautionary tale. As we detailed previously, the walkout created widespread service issues, from unclean rooms to shuttered amenities, with guests voicing extreme frustrations publicly. It concluded with a landmark agreement addressing worker grievances but also pointed to the the impact these problems faced by guests, employees and Hawaii’s tourism’s reputation.

Hawaii’s hotel industry has faced disruptions as labor negotiations continued across major resorts. Hilton Hawaiian Village reached its agreement, as did others, followed by the latest Sheraton Kauai resolution. These labor issues lead to service disruptions, including staffing shortages and reduced guest services, as was clearly seen during the Hilton strike. Travelers should remain informed about ongoing negotiations at Hyatt and consider alternative accommodations or contingency plans to avoid potential disruptions.

Travelers caught in the middle.

For visitors planning upcoming Hawaii vacations, the uncertainty at the Hyatt underscores the importance of choosing hotels that have resolved labor disputes.

One recent visitor shared their experience during the Hilton strike: “We felt caught in the middle—long lines, no room service, and nobody to clean our rooms. It was a nightmare during what should have been a relaxing vacation.”

A test for Hawaii’s hospitality industry.

With the stakes still high, hotel union leaders and Hyatt’s management face pressure to find common ground and avoid disruptions at one of Waikiki’s largest and most influential properties. As one of the last hotels standing without a contract, the focus moves to the Hyatt Regency Waikiki to see if it can soon follow the lead of Sheraton Kauai and other recently settled hotels, or if will become another Hilton Hawaiian Village-like debacle.