DoubleTree arrival a spark for Hilo hotels

The Grand Naniloa Hotel Hilo was set to join the DoubleTree by Hilton hotel portfolio today, effectively ending an era when mom-and-pop hotels dominated Hilo’s tourism scene.

And, it won’t be the last major hotel flag on Banyan Drive if Ed Bushor, CEO of Naniloa’s owner Tower Development, gets his way.

“I’ve already spoken to Hilton about bringing a Hampton Inn to Banyan Drive. They are very excited. It could happen in the next two years, if the government allows it,” said Bushor, who specializes in adding value to underperforming assets.

The entry of Banyan Drive’s first national hotel chain in about three decades comes on the heels of the Oct. 26 conceptual approval of a land-use plan for the area.

The state Department of Land and Natural Resources, which owns 97 percent of the land under Banyan Drive’s resorts, helped form the Banyan Drive Redevelopment Agency in January to give the community some say in the tourism district. The proposed plan keeps existing hotels and opens space for a couple more. It also allows for additional parking and other complementary businesses. The plan sets aside at least a portion of the golf course for a cultural and arts center, large enough to host the Merrie Monarch hula contest.

“The redevelopment is coming at the right time. It will create more interest in other properties that the state may put out to lease,” said Duane Kanuha, County of Hawaii planning director. “The agency next meets in January.”

If approved, the concept could revitalize a tired tourism district that hasn’t seen major investment outside of Hilo Hawaiian Hotel and the $30 million Tower pumped into Naniloa. Month-to-month leases at the Pagoda Hilo Bay Hotel (formerly Uncle Billy’s Hilo Bay Hotel), Reeds Bay Resort Hotel and the Country Club Condo/Hotel dissuaded owners from investing.

Bushor, who plans to bid on any of these DLNR leases that come available, views Banyan Drive as another Kuhio Avenue. His 2005 conversion of the budget Ohana Waikiki Surf into a Wyland Waikiki came before that Waikiki street’s current resurgence. Other investors were skeptical, but Bushor profited when he sold that hotel, which is now Courtyard by Marriott Waikiki Beach.

He has similar plans for Hilo, where he’s partnered with hula photographer Kim Taylor Reece to add personality to Naniloa. He’s also worked with the hotel’s manager Aqua-Aston Hospitality to align the facility and service to DoubleTree expectations.

“It’s an area that we wanted to get into but we had to find the right ownership,” Dianna Vaughn, senior vice president and global head of Hilton’s DoubleTree. “(They’ve) taken it from a budget property to a four-diamond upscale property.”

Aqua-Aston could have run the property under its own brand, but DoubleTree provides an “extra ounce of protection should the economy shift,” said Matt Bailey, Aqua-Aston Hospitality president and COO.

Vaughn said DoubleTree, which is closing in on 500 locations, has a strong global customer base. Hawaii is a top location for the Hilton honors program, which has 57 million members worldwide, she said.

Naniloa general manager Phyllis Branco said brand expectations have doubled workers to 80, including bakers to ensure guests get warm DoubleTree chocolate chip cookies. Pay has increased and occupancy should grow to 65 percent from an earlier 30 percent to 40 percent range, Branco said.

“It’s quite gratifying that more Hilo residents can work here rather than make the long commute to Waikoloa,” she said.