Hawaiʻi's hotel industry is pouring hundreds of millions of dollars into luxury renovations as the state shifts focus to higher-spending visitors.
Three Hawaiʻi hotels have spent more than $600 million in recent years to upgrade their properties to appeal to luxury travelers.
At a real estate summit in April, travel industry leaders said Hawaiʻi must lean into premium offerings — not just to attract the higher-spending visitor but to stay competitive in the global market.
Industry data backs that up, showing strength in luxury hotel rates while mid-market hotels see declines in rates and revenue.
Hotels are upping the luxury. 1 Hotel Hanalei Bay on Kauaʻi spent $300 million three years ago to transform the Princeville property into a luxury resort focused on sustainability and wellness. That works out to about $2 million a room.
On Hawaiʻi Island, Mauna Kea Resort has spent more than $240 million on renovations in the past two years.
And at the Mauna Lani, Auberge Collection, guests now have the option of spending $400 a night — on top of the room rate — to access an exclusive club named for the original owner of the land, Francis Iʻi Brown.
Sean Dee is the chief commercial officer at Outrigger Hospitality Group. He says the trend toward luxury is global and that Hawaiʻi is seeing more investment in luxury and upscale hotels.
Outrigger’s Waikīkī Beach Resort is in the midst of its own $100 million renovation. The work includes room upgrades, a new club lounge, an expanded lobby and a two-story surf museum. It’s part of the company's plan to reposition to “barefoot luxury,” by blending design with the brand’s local roots.
