As Hilton celebrates 100 years, its largest property, Hilton Hawaiian Village Waikiki Beach Resort, gears up for more investment — including expansion of its 22-acre campus, which already offers five hotels and three timeshares.
HHV owner Park Hotels & Resorts is in the design stage for a new mixed-use development, which will include hotel and ground-floor retail space, on a three-parcel site on the corner of Kalia Road and Ala Moana Boulevard where Kobe Steakhouse sits, said Duke Ah Moo, vice president and commercial director of Hilton Hawaii, during an interview Friday, which marked the brand’s 100th anniversary.
“We don’t know yet all the details of the project. It’s still in the development phase. It’s in the design stage almost ready to start the permitting process,” Ah Moo said. “We are constantly developing.”
HHV also plans to begin a full guest room renovation at the Tapa Tower, which as the largest tower at the complex supplies 1,021 of its 2,860 hotel rooms. Ah Moo said the renovation is the most significant at HHV in four years and will modernize rooms while adding more technology.
HHV is investing in innovation on a broader scale, Ah Moo said. About three years ago HHV started offering guests the chance to bypass lines with digital check-in on their smartphones. In the fall HHV introduced a GPS-enabled app called Explore, which is run through Foursquare and provides visitors with suggestions for what to do on property and nearby. In September HHV plans to launch an upgraded version of Explore that will allow guests to book local attractions, food and activities directly from their Hilton Honors accounts.
“It’s about convenience and being able to have one-stop shopping on your Hilton Honors app. I wouldn’t anticipate fewer employees at concierge desks. This is just another vehicle to find information,” Ah Moo said, adding that HHV reached a tentative agreement on a new union contract Sunday with members of Unite Here Local 5, which supplies the bulk of the property’s nearly 2,000 employees.
In the future, Ah Moo said, HHV plans to have smart TVs in rooms so that guests can access personal apps like Netflix.
“Technology is part of planning for the future. Our goal is to provide the most convenience to our guests and be competitive in the market,” he said.
These new investments are expected to ensure that HHV will remain a flagship property in the expanding Hilton chain, which now offers 17 brands across 113 nations, with more than 5,700 properties.
“It wasn’t the largest Hilton property when it was purchased. It has evolved into the flagship brand,” Ah Moo said.
HHV, whose history harks back to the circa 1928 Niumalu Hotel, wasn’t built when Hilton was founded in 1919 in Cisco, Texas. But the resort quickly became a rising star in the company’s portfolio after Conrad Hilton’s 1961 acquisition of the property from Henry J. Kaiser.
In 1961 HHV’s campus comprised thatched-roof guest cottages and just three towers, including the Village Tower, which was torn down to make way for the Tapa Tower; the Ocean Tower, which was re-branded as the Ali’i Tower; and the Diamond Head Tower.
Among the later additions that are still standing today are the Rainbow Tower, the Mid-Pacific Conference Center, the Rainbow Bazaar, the Tapa Tower, the Kalia Tower, two chapels and the Grand Waikikian and Grand Islander timeshare towers.
It’s difficult to calculate total reinvestment into HHV under Hilton, but the company says that its 1988 $100 million master plan, which didn’t even add any towers, would have cost $212 million in today’s dollars alone.
Joseph Toy, president and CEO of Hospitality Advisors LLC, recalls a time during the early 1980s when HHV had the highest appraised value of any stand-alone resort in the world.
“It’s always been an anchor for Hawaii’s hotel market, and it’s still a major destination resort. People still come to Hawaii to stay there,” Toy said.
Keith Vieira, principal of KV & Associates Hospitality Consulting, expects HHV’s latest addition — whether it be all hotel or include timeshares — will quickly be absorbed into the market, too.
“They’ve done an amazing job, and they’ll deliver another project that is needed,” Vieira said. “Prior to the tourism softening that started in the second half of last year and has continued, hotels were running occupancy above 80% and some even into the 90% range. We need more inventory, maybe not today or next year, but beyond.”
Toy said the fact that HHV hasn’t changed its positioning as the largest resort in Hawaii and in Hilton’s portfolio is testament to how well it has been received in the market.
“Almost everything that they’ve done at the resort has been hugely successful,” Toy said. “They’ve got a following.”
That was certainly true of the Korean family Jihyon Cho, husband Kwang Seob Shim and 8-year-old son Jaemin Shim, who were surprised Friday when they arrived in the midst of Hilton’s anniversary celebration. As HHV’s 100th guests to check in, they were upgraded to the property’s 2,219-square-foot Ali‘i Suite. The suite, which typically retails for $2,000 a night, has hosted a plethora of celebrities, including President Donald Trump, President Barack Obama, Michael Jackson and Buzz Aldrin.
“We look for Hilton when we travel,” Cho said. “I use Hilton a lot. It’s cozy and very neat. But wow, this is unbelievable!”
That’s the response Hilton wants as it embarks on its next century with a goal of surpassing a past that has significantly affected the hospitality industry and communities across the globe. Hilton credits itself with “introducing room service, air-conditioned lobbies, in-room televisions, airport hotels, the mini-bar, the computerized reservation system, and Connected Room — the first hotel room allowing guests to unlock their doors and control their lights, thermostat and TV with a smartphone app.”
And, if that weren’t enough, the company also claims the brownie and the pina colada, which it says were invented at Hilton properties.
Now Hilton is seeking new firsts, including using science-based targets to reduce its environmental impacts by half in 2030 and doubling its social impact.
It made greater strides toward those goals this week with the launch of the Hilton Effect Foundation, which included Hawaii in its initial 15 grants. Hilton is giving the state Division of Forestry and Wildlife money to help fund watershed improvement projects on Oahu, Maui and Hawaii island.
HHV also upped the company’s social impact by joining Hilton’s “Random Acts of Hospitality” program. That was the impetus locally for a May 16 trip to the Shriners Hospital for Children, where HHV donated 100 ukulele to kids, who were able to take ukulele lessons from Jake Shimabukuro.
These efforts are expected to amplify what Hilton calls the “Hilton Effect”: its self-proclaimed, world-altering impact on the hotel industry and communities across the globe.
“One hundred years ago, Conrad Hilton had a noble idea that travel can make the world a better place,” Chris Nassetta, president and CEO of Hilton, said in a statement. “That deep-rooted sense of purpose has fueled our transformative impact all across the globe, as we have welcomed 3 billion guests, employed 10 million Team Members and contributed $1 trillion in economic impact.”