Unite Here Local 5 workers rallied in front of the Ilikai Hotel on Tuesday, protesting the latest contract offer from management and possible conversion of the property’s remaining hotel rooms into condominiums.

The circa-1964 property once employed 750 union workers. However, jobs were cut as hotel rooms were eliminated in various sales, said Local 5 spokes­man Cade Wata­nabe. The remaining 63 union workers at the hotel, owned by New York-based iStar Financial Inc. and managed by Hotel Management Services, could lose their jobs, Wata­nabe said.

"The Ilikai is really a poster child for what is happening in our industry and to our jobs," he said. "Because of the drastic change in ownership and management, workers are facing losing their jobs or at the very least receiving substantially less money and benefits. We need the community, especially our elected leaders, to become interested in this crisis."

Joli Tokusato, who has worked at the Ilikai for 22 years, said she rallied to preserve jobs and the quality of them. Through the years, Toku­sato said, many friends have lost their jobs as the hotel shrank from 800 rooms to about 200. Now she is worried that her job as a guest services agent is at risk.

"They plan to sell off the rooms as condominiums. If they are allowed to do it, the impact could be enormous," Toku­sato said. "Hopefully, condominium owners would put the rooms into a hotel pool, but there is no guarantee. We are all worried."

Local 5 has urged Ilikai owners not to support iStar’s conversion plan during an apartment owners vote Tuesday, Wata­nabe said.

Ilikai General Manager Terry Dowsett declined to comment on speculation that the hotel soon may close or be converted.

"It’s a challenging time as we go through change," Dowsett said.

Progress in bargaining has been made since the most recent union contract expired Dec. 31, 2010, he said.

"We have a bargaining meeting scheduled for Nov. 27, and we are very confident that we are going to reach an agreement," Dowsett said. "We are very close."

However, workers protested the latest contract offering at the rally.

"The hotel has offered workers lower wages, fewer health benefits, and wants them to waive their right to participate in a hotel workers pension fund," Wata­nabe said.