The Timeshare Beat
April 2, 2001
HONOLULU, HI -- While timeshare has been flourishing for many years on Kauai, Maui and the Big Island, Oahu has
been in the timeshare doldrums. Not a single new resort opened its doors on this most populated of all the Hawaiian
islands for approximately 15 years.
That situation has changed with the recent opening of the Hilton Grand Vacations Club at the Hilton Hawaiian Village, and on May 4 Marriott's will break ground on their new Vacation Ownership property at Ko Olina.
"Those two are priming the pump for a whole new generation of timeshare resorts on Oahu," remarked one excited timeshare veteran on the island. "Oahu is the island with everything, and it's been ignored as a timeshare destination too long. It's really exciting to see the doors swinging open here again."
All of the current timeshare resorts on Oahu are hotel/condo conversions dating back to the 1970s and 80s. Even Hilton's 24-story Lagoon Tower on Kalia Road was being used for apartments when Hilton announced in 1999 that residents would have to move out by early 2000 so it could convert the site to a 264-unit timeshare property.
Hilton has been marketing its new vacation ownership resort extensively and successfully to Japanese visitors as well as the traditional market from the west coast of the USA. About 15 percent of the intervals had been sold at the time of the grand opening on January 18, 2001. Units now being rented like hotel rooms will be removed from rotation as intervals are sold.
According to HGVC CEO Antoine Dagot, Hilton is investigating a second property in Honolulu and properties on
Kauai, Maui and other islands.
"We’d like to have a second project on line by 2004," said Dagot.
The Hilton Hawaiian Village is the only true resort destination within Waikiki.
When Marriott's massive Ko Olina development in West Oahu opens, it will be the first purpose-built timeshare project
on the island. It will also be the first timeshare project on the island to venture outside of Waikiki since the
Hawaiian Princess, at Makaha on the far northwest side of Oahu.
Marriott recently held a 'career night' on Oahu, attracting 800 prospective employees and timeshare sales reps from all of the outer islands. Pre-sales are expected to begin in September or October, but since State laws prohibit the release of prices at this stage of the game prices must be guestimated from the prices at other MVCI resorts in the Islands. On Maui, for instance, the Marriott's Maui Beach Club is priced from $18,100 to $59,000 for 1-week intervals.
It is unlikely that intervals will be any cheaper at the new $300 million Marriott's Ko Olina Beach Club.
According to an article in The Honolulu Advertiser, the first phase at Ko Olina -- containing 125 units, retail
shops, a health club, restaurant, bar and interactive water feature -- is scheduled for completion in January 2003.
Marriott's new Oahu resort will be within shouting distance of the luxurious JW Marriott Ihilani, one of the great resort spas in the world. Ko Olina Resort & Marina once was a historic playground for island royalty. The 642 acres is in the process of being transformed into Hawaii's premier planned resort, marina and residential community.
The appearance of these two new properties has increased speculation that more are coming. Starwood Hotels & Resorts Worldwide, which is currently working on a huge timeshare project in Kaanapali, Maui and is holding a 'career night' of its own on April 4 at the Westin Maui, is fully expected to open something on Oahu as well. The company currently has several properties in Waikiki, and there are good options available for purchase outside of Honolulu as well.
For instance, people have long looked at the Turtle Bay Hilton on the north shore, which was originally built with the possibility of casino gambling in mind, as a perfect timeshare destination. Until Marriott dared to step outside of Waikiki, however, it seemed too far away from the city to seriously consider. Now some are wondering if Mr. Dagot mis-spoke when he mentioned another resort in Honolulu, and if he meant Oahu in general instead.
Sun International has recently suggested a destination casino/resort at or near the former Sheraton at Ko Olina, which has raised eyebrows as well as speculation in the islands. In a state where even bingo is barely tolerated, casino gambling is sure to have a long and rough road to travel if it is ever to be approved, but should it ever make it through the legislature such a move would surely open West Oahu to even more development.
In addition, rumors are in the air that Las Vegas-based Consolidated Resorts, with several timeshare resorts in the islands, is planning to open a new timeshare property on Oahu. The location and name of the prospective property have not been disclosed.
Taken in its entirety, 2 new resorts may not seem like a lot. But considering the long hiatus timeshare has experienced on Oahu, it has raised not only awareness of Oahu's potential for more timeshare resorts but the level of excitement as well. According to Gabriel Lee, Senior Vice Pres American Savings Bank, the island can expect to see timeshare boom in East Honolulu. And other areas of the island will most likely follow, finally giving the Neighbor Islands a run for their timeshare money.
It's been a long time coming.
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