As Hawaii continues to swing dramatically towards luxury, a sweeping $680M deal to acquire Turtle Bay Resort on Oahu’s North Shore has been announced. Plans for it to be reflagged as a Ritz-Carlton under new owners Host Hotels & Resorts, which also owns Fairmont Kea Lani (Maui) and other luxury hotels, have also been announced.
This change elevates the iconic property, last renovated in 2020-21, and signals a broader trend: the mounting clout of Hawaii’s luxury hotel sector as the vacation rental market struggles.
Hawaii luxury continues to be fortified vs. struggling vacation rentals.
As vacation rentals navigate challenging times in Hawaii, exacerbated by ever-tightening regulations and growing government scrutiny, luxury hotels are not merely surviving—they are clearly thriving.
The acquisition of the 450-room, 4.5* rated Turtle Bay Resort reflects an industry becoming even stronger, including through high-profile renovations and rebrandings such as this. The deal is expected to close this summer and illustrates how luxury hotels continue to forge ahead in Hawaii.
The resort currently has room rates starting at about $700 per night, resort fees beginning at $59 a night, and parking starting at $42, plus an accommodation tax of 18%. We anticipate these will move higher as the changeover takes hold. Resort fees and parking charges are variable depending on the room category.
Behind the glamour: The politics of Hawaii paradise.
This transition of Turtle Bay Resort to a Ritz-Carlton also speaks to a deeper situation, a complex dance of power, influence, and economics involving the hotel industry and Hawaiian state governance, which we recently wrote about. The cozy relationship between state officials and Hawaii hotels, as evidenced by a myriad of recent changes, including awards, policy shifts and appointments, certainly raises eyebrows. Critics contend that while hotels bask in governmental favor, vacation rentals and smaller operators are being sidelined, struggling under the weight of heavy regulations, limited support, and much scrutiny.
The role of influence in shaping Hawaii travel.
Host Hotels is championing this acquisition as a boon for tourism and local partnerships. Yet, as luxury properties like Turtle Bay move ahead in branding and cost, the disparity between the ‘haves’ and the ‘have-nots’ of Hawaii’s accommodation sector seemingly widens.
The state’s policies reflect an increasing preference for these profitable behemoths, even at the expense of smaller, local businesses that once thrived along side in a more diverse accommodation market.
Community and Visitor Impact.
With Turtle Bay Resort as a Ritz-Carlton, it will likely attract a wave of ever more affluent travelers, boosting income for some on one hand while also continuing to alter Hawaii’s socio-economic landscape. As more and more luxury resorts appear on the Hawaii landscape, the diverse charm and appeal of Hawaii could diminish, leading to a very different tourist experience that favors the elite.
What’s your take on the rebranding of Turtle Bay Resort?
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Keep building the high dollar resorts and watch the money go to the mainland corporate offices vs staying in the islands, and supporting the local economy.
Corruption
I am not wealthy but I love luxury so since the endeavor will help the economy at the same time, I’m all for it. Having a good mix of affluence and affordability is a good thing.
I think Hawaii’s long term plan is to have 1/2 as many tourist who end up paying 2 to 3 times the price. This way the Government isn’t really out much money. Less tourist means less demand for the already limited resources in Hawaii also.
Amazing The Big Hotels are all of a sudden Thriving and making big investments ($$ go off shore) When STRs are under fire. Im aware its been in plan for awhile but now its going into place and things will all of a sudden move quickly. I would like to see numbers on how much the elites that go to the high end hotels contribute to the local economy vs the families that stay at STRs, Ibet they are lower
BOH is my source for what is happening tourist wise in the islands.
There is an alarming trend towards support of luxury rentals and away from the more affordable choices that most of us travelers are looking for. Governmental support for this trend is alarming.
BOH, please continue to be a reliable and unbiased source for all aspects of this movement, including how and why the politicians have got their dirty hands in the process.
It’s a beautifully appointed and redesigned resort with breathtaking natural surroundings. and should be given a Hawaiian name as the area is uniquely polynesian.
Johannes post got me thinking about the “super expensive” rates that these new re-branded hotels are charging. Is there really That many wealthy people who are Actually interested in going to Hawaii. Can these resorts actually fill up their many rooms and make a profit? I would think that they would enjoy spending their money on a European trip/Viking/Crystal Cruise or something that would be more higher level. So glad I have SO many classic/treasured photos from the Hawaii of the 70’s, 80’s, and 90’s when it was a whole different pleasant place to experience. Ahh!! The Good Ol Days.
That may be true but the area is unique in Oahu, it was the place of Aliʻi.
King’s Walk begins after Kuilima Cove and stretches across the shoreline to Kahuku Point. A leisurely walk for spotting marine life and native birds.
It’s different to Waikiki’s Royal Hawaiian ( town vs country ) experience which is undoubtably, the most historic hotel ( building and grounds and stories) to stay in Oahu. Aloha !
Europe is totally overcrowded right now, especially Italy and Spain. Hawaii was always special and I hope it returns to that. They should emphasize on nature, relaxation (and yes, that would include a massage at the beach cabana), Hawaiian music and cultural events. Personally, I don’t see the advantages of mass tourism or time shares and I also don’t think that those staying in a short tern rental contribute that much to the local economy. Most buy food at the Safeway or Cosco, since they have a kitchen or may be order a pizza..
this will just continue to squeeze more of the have nots from traveling to Hawaii which will result in more of the haves deciding to move to or have a second home in Hawaii which will just continue more of the have nots to move from Hawaii since the taxes will go up on all properties making more of the locals unable to keep up with the increased cost of living here and therefore move to the mainland.
Every time a property get bought and an name change the price goes up. Not a luxury property but now a Uberluxury property. Maybe the golf course fees will also double and Horray for the state 18% more income from the room rate price increase not to mention any sales tax imposed by the state of Hawaii in the ownership change. Just a solution for people that have more money than they know what to do with in life. Wait until other hotels follow their lead.
We had the pleasure of staying at Turtle Bay with our kids in 2017 – it was one of our most memorable family vacations ever but it was also the most expensive trip we ever took with our kids. That being said, the property is stunning and the location is beautiful. I am glad we were able to go – we would never be able to afford it now, and I’m sure the Ritz name will push room rates to an even more astronomical price. Bummer.
Agree, the prices are very high because it is newly renovated with an award winning design throughout. Beautiful place to capture life’s beautiful moments and conferences too.
For about 50% less, you can stay next door at the Kuilima Estates which are wonderful.
Waikiki continues to be a good travel deal
We saw this change-over to uber-luxury hotels starting 25 years ago. Used to stay at Four Seasons Wailea several times each year after it opened in the late 80s, starting at $165/night garden view. $200-350/night for partial and ocean view through first half of the 90s. By late 90s they began catering to the wealthier Hollywood & Silicon Valley markets. Rates rocketed upward. Our reservation for New Year’s 1999-2000 was cancelled by the hotel. The lovely mid-market Kapalua Bay Resort was torn down and became the Montage, another property catering to wealthy clientele. Beautiful destinations around the world want the the wealthiest “haves”. Mid-market travelers are now the “have-nots”.
I believe that the rebranding is an excellent idea. However, your article seems to have a negative tone, Oahu is not adding another luxury hotel, the Turtle Bay Resort was already an upscale property. It is a fact our lodging businesses supply great jobs, great working conditions, and excellent opportunity for advancement. The guests staying at these hotels supply much needed and wanted business.
“It is a fact our lodging businesses supply great jobs, great working conditions, and excellent opportunity for advancement.”
Boy, that’s definitely not what I’ve heard, hence why so many cleaners, maintenance workers, managers, etc. have left the hotel industry to work in support of STRs instead.
I guess until u actually work for let’s say Hilton Hotels which was just voted best company in the world to work for, you never can really understand the lodging situation in Hawaii.
All the islands seem to be headed towards larger versions of Lanai… Private fiefdoms of the rich and powerful complete with serfs and wholly owned acquiescent administrators… Hope I’m wrong.
Best Regards…
Camped in a field during spring break 1969 where Kapalua Resort is now. 0 $ Surf was flat all week. Still fun.
Own a legal Turtle Bay STR now, which stays full for those wanting a more reasonable Turtle Bay experience.
I believe you are wrong as the Turtle Bay Resort has “by laws” public access. It’s an ancient, Hawaiian place.
You can use the beaches, trails, eat at the bars, restaurants, shop, have a coffee at the cafe, meet your guests, have an event on the grounds, attend a conference ( great conference area ), etc.
I think you may be missing my larger point here Rob…
Best Regards
Mahalo for another thoughtful article, albeit a scary and depressing one.
After reading it, I had my first feelings of resignation.
If the government wants ultra-luxury and exclusivity, and the people of Hawaii want it…who are we to argue?
Not everyone can live anywhere they want. There are the mansions for the haves, the tents for the have-nots, and the modest to upper-middle-class houses for everyone in-between.
Maybe the same goes for vacation destinations, and maybe it’s a foregone conclusion that not everyone can vacation anywhere they want as well.
It’s not hard to see the writing (cough cough…corruption) on the wall. Big hotel lobby $$ is being spent to woo government officials – STVR are/were cutting into their profits.
There used to be a time where they tried to hide this corruption, now they flaunt it and know that in general, they won’t be prosecuted for corruption (yea, they toss up one sacrificial lamb here and there to keep the peasants somewhat quiet) and will be “voted” into office yet again once they’re done pandering and pillaging (I put voted in quotes because I have my doubts that our votes even matter any more, with electronic voting, he who owns the voting booths/software controls the outcome.) We see it at the local, state and federal level daily.
Add to this 1 Hotel Hanalei Bay.
A hundred years ago the government was controlled by sugar. Today it’s luxury hotels.
Is there really a large enough volume of big spenders to support all the local businesses that are currently being supported by tourists?