Outrigger Enterprises Group, which got its start as a kamaaina hotelier in the 1940s catering to middle-income visitors, is putting more of an emphasis on luxury with the launch of its new Outrigger Resort brand.
"Our goal is to be known as the premier beachfront resort brand in the world," said David Carey, Outrigger president and chief executive officer, as he announced Monday the Outrigger Resort brand, which will include only beachfront hotels. "We know beachfront destinations and have the experience to do it better than anyone else."
The family company started when Roy Kelley and his wife, Estelle, began renting a back bedroom to military folks 67 years ago and was built on catering to middle-class American families traveling on wholesale packages to Waikiki. However, in recent years it has followed the trend of other regional hoteliers and looked for growth far beyond its primary market on Oahu, adding 13 other premier on-beach properties throughout the Asia-Pacific region.
The Outrigger Resort brand will include 15 hotels. Two of those are in Waikiki: the Outrigger Reef Waikiki Beach Resort and the Outrigger Waikiki Beach Resort, which are among the best in Outrigger’s 40-property portfolio.
Keith Vieira, principle of KV and Associates Hospitality Consulting, worries that Outrigger’s move is part of an underlying repositioning trend that in the last decade eliminated much of the midpriced inventory from Waikiki.
"Outrigger is doing the right thing for their guests from the luxury market, but the state needs to find a way to grow midpriced inventory so that we don’t outprice the visitors from emerging markets and first-timers, who over their life span will grow into the higher-priced properties," Vieira said. "Limited hotel inventory, especially at the midpriced level, has produced some of the highest average daily rates in the nation."
Vieira said Outrigger’s latest strategy will help the company meet the more exacting standards of beachfront guests and position itself higher within the markets that it serves.
"Any time that you have a beachfront, the guests have an expectation that there will be a higher level of service for the rate that they are paying," Vieira said.
He said Outrigger’s strategy is likely to bring additional interest in Hawaii from the higher-end markets that the chain serves in the Asia-Pacific region.
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Outrigger is re-branding these 15 beachfront hotels as Outrigger Resorts:
1. Outrigger Waikiki Beach Resort, Hawaii
2. Outrigger Reef Waikiki Beach Resort, Hawaii
3. Outrigger on the Lagoon, Fiji
4. Castaway Island, Fiji
5. Outrigger Laguna Phuket Beach Resort, Thailand
6. Outrigger Laguna Phuket Resort and Villas, Thailand
7. Outrigger Phi Phi Island Resort and Spa, Thailand
8. Outrigger Mauritius Resort and Spa
9. Outrigger Konotta Maldives Resort, opening July
10. Outrigger Guam Resort
11. Little Hastings Street Resort and Spa, Noosa, Australia
12. Outrigger Surfers Paradise, Australia
13. Outrigger Twin Towns Resort, Australia
14. Hainan Island, China — Outrigger Clearwater Bay Resort, Sanya; announced project
15. Vietnam — Outrigger Vinh Hoi Resort and Spa; announced project
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"From a hotelier’s perspective it makes good sense," he said. "With all the added costs from labor to utilities to taxes, hoteliers have to continually reposition their properties so that rate growth outpaces the growth in costs."
Bitsy Kelley, the founders’ granddaughter and Outrigger’s vice president of corporate communications, said, "I think they (Roy and Estelle) would have been tickled pink, astounded and so very proud to see where their legacy has gone and is continuing to go."
But Outrigger is not just delineating its premier beachfront resorts. In addition to the launch of the Outrigger Resorts brand, the company’s 15 resort condominium properties on Oahu, Maui, Kauai and Hawaii island also will be marketed under a new brand, Hawaii Vacation Condos by Outrigger. The company also will continue marketing its other brands and affiliates, including OHANA Hotels and Resorts, Ala Moana Hotel, Embassy Suites Waikiki Beach Walk, Holiday Inn Waikiki Beachcomber Resort, Best Western the Plaza Hotel, Airport Honolulu Hotel, and Boathouse Apartments by Outrigger.
"With our brand revitalization, we are creating a solid foundation that will help fuel our future growth and build upon Outrigger’s position in the hospitality industry," Carey said.
He said the just-announced acquisition of the Outrigger Konotta Maldives Resort project, the recent openings of Outrigger Laguna Phuket Beach Resort in Thailand and Outrigger Mauritius Resort and Spa, and the recently purchased Outrigger on the Lagoon-Fiji and Castaway Island-Fiji resorts all are part of the new standard of Outrigger Resorts.
"Each of our properties are extremely unique," said Jasmine Tso, vice president of global brand services for Outrigger. "We are careful not to use the word ‘luxury,’ but we use the word ‘premier,’ as we believe that we are the best in class of the locations that we are in. We understand that the word ‘resort’ implies certain full-service amenities. Certainly, our guests from the Asia-Pacific and our higher-end travelers expect it."
