Halekulani closed in March for a planned shuttering through April. Now, however, plans have changed drastically given today’s circumstances. The hotel plans to remain closed until July 2021. Let’s hope by then the world will be different. The question remains however as to whether this may hint to the future of Hawaii hotels?
“With circumstances changing almost daily, including with the prevalence of the virus, governmental guidelines and decrees, personal protective equipment, social distancing, and new cleaning and hygiene protocols, we’ve also had to calculate how soon domestic and international tourism might rebound, and how quickly business in Hawaii ― and Waikiki specifically ― might recover.” – Halekulani COO Peter Shaindlin.
Tens of thousands of Hawaii jobs are at stake with the University of Hawaii reporting more than 43,000 worked in the accommodations sector last year, and another 112,000 worked in restaurants and bars.
Hawaii hotels previously indicated that they needed a start date to be certain and were planning August 1. The governor’s further extension this past Monday to August 31, leaves hotels in doubt, because the new date is not a sure thing.
The state’s hundreds of millions in hotel tax revenue is at stake. Also not helping is the closure of the former Princeville Resort Kauai (aka St. Regis Princeville).
That was mostly part of a planned multimillion-dollar makeover. It is scheduled for reopening in November 2021, as 1 Hotel Hanalei Bay, which is the flagship wellness brand of Starwood. When it reopens, it will have 252 guest rooms, of which 51 are suites, and an 18,000 square foot spa and fitness center together with a wellness center. Again, it’s future may be in doubt.
On the national scale, Chip Rogers of the American Hotel and Lodging Association said 8,000+ U.S. hotels could be forced to close by September.
“If business travel doesn’t pick up by this fall, and the PPP funding has run out, then the really bad problem that exists today is going to result in massive foreclosures for hotels,” he said.
Rogers has asked Congress to help before that happens. “Give them a low-interest loan, give them something where they can just stay afloat because that is all they are asking for.”
The summer should have been the peak season for Hawaii hotels. But it has been anything but. Without hotels, tens of thousands of Hawaii workers will be without jobs. Federal legislation may be coming to help save these properties and the future of travel.
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Hopefully the Federal legislation to save the hotel properties extends to owners of short term vacation rentals. So far, we haven’t qualified for the PPP program (we pay 1099 wages and cleaners send us invoices), SBA small business loan program (can’t use it to pay down mortgages), and the Hawaii small business relief program (must have a business address, can’t be your home address) have all disqualified us. In addition, we have to pay hotel property taxes at 4 times the rate of residential real estate while having no business since the end of March. We’ve had to cash out our retirement to pay the mortgage, homeowners association and property taxes.
Halekulani and Royal Hawaiian were favorites. I lived in Honolulu for 12 years and spent many an evening enjoying sunset Hula and dinner across from the ocean. Let’s hope that this and other iconic historical spots like it survive and thrive!
Suzanne and Ron S.
Stayed at the Halekulani many years ago,still the most elegant hotel with the most impeccable service I’ve ever had the pleasure of experiencing, to lose the old girl would be a tragedy.
I really enjoy your communications. We come to Kauai every winter for 2-3 months. Our grandson is enrolling at UH in August. We were interested and optimistic to see the following plan for incoming students. Feel free to use as you wish.
Aloha. https://www.hawaii.edu/news/2020/07/13/travel-exemption-out-of-state-uh-students/
Hi Gary.
Thank you.
Aloha.
This article from Hawaii News Now says that it is closing because of a need for renovations… rather than waiting for a later date, the current conditions made them move ahead with the improvements.
“ Management at Waikiki’s famed Halekulani Hotel informed employees on Monday that the property was closing until July 2021 for a series of renovations it says it can no longer wait to complete.
In a video message, the hotel’s chief executive officer thanked employees for their courage and perseverance during the ongoing pandemic — but said the uncertainty brought on by coronavirus necessitated the decision to begin the improvements.
I’m very glad to see that they aren’t closing for good. In my opinion, they make the best mai tai on the island!
I agree! At least it was the best Mai Tai on Waikiki. I know because I sampled them all. Plus there was the awesome sunset view and live music with the former Miss Hawaii dancing. Unforgettable!
And the (only?) positive part about this whole virus thing is that the “former Miss Hawai’i” is now teaching Zoom hula classes (in her time not being at the Halekulani) and I get to be her student these days without having to move to Oahu! 😀
We have been coming to Kauai for the last 35 years every Oct. through Nov. We are sad to say we won’t be coming this year.😭 we want to stay healthy and we want to make sure we keep our many friends and Ohana family safe too. Aloha till we meet in 2021
Hi Tricia.
Thanks.
Aloha.
Article quote: “Tens of thousands of Hawaii jobs are at stake with the University of Hawaii reporting more than 43,000 worked in the accommodations sector last year, and another 112,000 worked in restaurants and bars.”
Was this report reflecting statewide figures or Oahu only? I’ve always wondered what percentage of the state’s industry/income is tourism-related…
Thank you for providing the most current and relevant information about the reopening of Hawaii. I appreciate your undying efforts. Maholo.
Hi Ann Marie.
Thanks.
Aloha.
I wish I could have had a swim in the Orchid pool … I think Waikiki will be very different when we finally get back.
I’d say let the natural course of foreclosure and bankruptcy take it’s course. Another entity will buy the assets from the bank or bond holders and start fresh n 2021. Former employees collect welfare until then or search out other jobs or other States.
The upside is that the “outstanding” local politicians / Party will own the debacle and get voted out.
Really hope the new hotel can reopen on Hanalei bay.the st regis was very nice and location stunning
When the politicians stop getting paid THEN the issues will get resolved so citizens of Hawaii, what the heck are you waiting for!? Oh yeah, the number of laboratories in Florida that were supposedly reporting HUGE spikes in cases that have been now shown to be a lie is up to 33 and counting! That is the kind of BS data that decisions are being made on across the country!