Aloha!
It’s that time again—welcome to the latest issue of the Hawaiʻi Hotel Hui Insider!
This month, we’re introducing a new section: Anonymous Comments to the Editor—a space for unfiltered industry opinions. Whether you love or hate what you read, I’d love to hear your thoughts.
As always, this newsletter is about building a community of hospitality professionals here in Hawaiʻi. If you find it useful, please consider sharing it with a friend. The more voices we have, the better!
We are trying to grow our community, so if you enjoy this newsletter, please consider sharing it with a friend! The link the subscribe can be found here or you can sign up bellow.
Alright, let’s dive in.
Mahalo,
Dan Wacksman
Hawaiʻi Hotel Hui Insider Editor in Chief 😄
New Properties
The new year is a time for big goals and announcements, and hotel development is no exception. On the heels of the Atlantis announcement last month, a few more projects have been announced:
Hawaiʻi Island:
Meridian Pacific, Ltd, a privately held investment and development company, is launching a $113 million project as part of its $700 million mixed‑use development in Waikoloa Village on Hawaiʻi Island. This project will introduce two new IHG‑branded properties—a Holiday Inn Express and a Candlewood Suites. Positioned within a vibrant, community‑oriented environment rather than a traditional resort setting, these hotels are designed to offer budget‑friendly accommodations.
It will be interesting to see what sort of ADRs these properties will command. While the 2024 island-wide hotel occupancy was 67% and $422 ADR, the local market dynamics in Waikoloa Village may temper their rate potential.
Further south on the Big Island, the former Uncle Billy’s Kona Bay Hotel in Kailua‑Kona is being revitalized. Purchased in late 2021, the property is currently undergoing a $30 million renovation.The building has been gutted and will retain its historic four‑story semi‑circular layout, updated with new walls, furnishings, and modern amenities. In its place, a 123-room Hampton Inn Kailua Bay Hotel will soon rise, reviving the site.
Oahu:
With nearly 3,000 rooms, you’d think Hilton Hawaiian Village had maxed out—but plans for a 36-story, 515-room tower are headed to the Honolulu City Council for review. The AMB Tower (Ala Moana Boulevard Tower) would replace the older buildings near Ala Moana Blvd and Ena Road. Yes, the ones with Goofy Café and the ABC store. If approved, construction could start in 2026 and wrap up by 2029.
Maui:
Hilton is also expanding, with two new hotels on the island, including a brand-new Hampton Inn & Suites Maui Kahului, located at the former Maui Palms site. The property is set to open in April 2024. Next door, Maui Seaside Hotel will upgrade into a Tapestry Collection by mid-2026.
What is a Tapestry Collection, you ask? It’s a “soft brand,” meaning it follows looser brand standards so each hotel can keep its unique character and local flair- no strict uniformity, but all the brand fees.😉 Rumor has it that another Waikiki hotel may rebrand as a Tapestry.
HNL - One Step Closer to The 21st Century?
Every time I walk through the new Hawaiian Terminal into the old one, I feel like I’m time-traveling back to the 1980s (if only I had my members-only jacket - a reference for those of us who remember the ‘80s!). While Daniel K. Inouye International Airport (HNL) has been notoriously slow to change, little by little, I’ve noticed improvements each time I pass through.
Hawaiian Airlines recently unveiled plans for its most significant lounge investment, set to open in 2027. The new premium lounge, five times the size of the current one, will be located at the entrance of the Mauka Concourse in Terminal 1. At nearly the same time, Hawaiian Airlines confirmed it would be shuttering its premium airport servicing, which included, among other things, access to Apt. 1929, with libations from Bar Leather Apron. It appears Apt. 1929 will be vacant effective March 14, 2025.
Even More HTA Drama
The Hawai‘i Tourism Authority (HTA) just hit another roadblock. Its request for $5 million in emergency funds to support Maui’s tourism recovery was denied, with state officials arguing the downturn no longer qualifies as an “emergency.” DBEDT Director James Kunane Tokioka refused to sign off, saying, “This is 18 months later—it’s not an emergency.” Eighteen months later might not meet the definition of an “emergency,” but to us hoteliers, 60% occupancy in Maui is considered an emergency!
Meanwhile, House Tourism Chair Rep. Adrian Tam introduced a bill (HB 447) to limit HTA’s access to emergency funds further, arguing that marketing shouldn’t come from this pot.
“Fun” Stuff
Hawaiʻi vacation rentals had a 52% occupancy rate in 2024, down from 74% in 2019, compared to the statewide hotel occupancy of 73.4%. Is the luster coming off the vacation rental market?
A recent article in Travel and Leisure was headlined “This U.S. City Charges the Highest Tourist Tax in the World — and It’s Not New York City.” Guess what city it was? Wait for it… Honolulu! We’re #1!
A more recent T&L article mentioned a booking.com study that found Hawaiʻi to be the most welcoming state. I will go out on a limb and say this reflects our Aloha spirit, not our taxes and fees.
Hotel Performance – Courtesy of Powell and Aucello
Month of December:
Total revenue was up 1% in December, which reversed the trend of the previous three months. Oahu led the way with a 2% increase in RevPAR due to a combination of occupancy and slight rate gains. Regarding RevPAR, Maui and Hawaiʻi Island were flat, while Kauai had a 6% drop. The Lahaina/Ka’anapali/Kapalua market is still holding Maui down.
For more destination data and development news, check out Powell & Aucello’s monthly newsletter.
Other News
Congratulations to my friends Will Song and Patrick Ahler on the successful sale of their marketing and revenue management agency, Lights On Digital. Their team has done incredible work, establishing themselves as one of the few local companies delivering world-class websites, marketing, and revenue management solutions for the hotel industry. From all accounts, the new ownership is committed to building on that success and continuing its legacy. Wishing Will, Patrick, and the entire team all the best in this next chapter!
HEDNA Conference Takeaways
In late January, I attended the HEDNA conference in San Diego. HEDNA—the Hospitality Electronic Distribution Network Association—might not sound thrilling initially. Still, it plays a crucial role in shaping how hotels connect with OTAs, manage parity, and navigate payment challenges. The agenda was packed with insightful discussions and, as always, it was great to exchange ideas with industry peers.
A couple of comments that caught my attention:
"Revenge travel is out; intentional travel is in." - Traci Mercer, SVP at Priceline, highlighting the shift in consumer behavior.
Matt Varabkanich from Cleveland Research pointed out that Expedia and Booking spent a combined $14 BILLION on marketing in 2024. If you divide that across their estimated 480,000 hotels, that’s roughly $30K per property—an eye-opening number, even if it's just back-of-the-envelope math.
These giants allocate 5.4% of their gross revenue to marketing—so here’s a question: how much does your hotel spend?
HBX Group’s €5B IPO: A Distribution Giant Might Go Public
Speaking of distribution… HBX Group—formerly Hotelbeds (the giant that swallowed up major wholesalers like GTA, Tourico, Bedsonline, and ROIBACK)—is planning a €5 billion IPO on the Spanish stock exchange. That’s a whole lot of commissions and parity violations.😉 The listing is set for mid-February, so by the time this newsletter hits inboxes, it might already be public.
Tripadvisor's Bid for Relevance in the AI Era
Tripadvisor has partnered with AI search engine Perplexity: the same company I mentioned in last month's newsletter. As part of the deal, Tripadvisor will provide exclusive data, including AI-generated review summaries and user insights, to help deliver more personalized recommendations. Tripadvisor has been struggling to find its way for years (once trading at $100+ a share after spinning off from Expedia, now hovering around $17). This collaboration feels like a move to stay relevant as AI-driven search reshapes the travel space. If I were a betting man, I’d wager these AI recommendations will be monetized—meaning hotels may have to pay Tripadvisor to appear in the results. Everything old is new again!
Never Memorize What You Can Look Up in a Book
The story goes that Albert Einstein didn’t remember his phone number. When asked why, he replied, “Never memorize what you can look up in a book.” Einstein was also known for his absent-mindedness, and many believe this meant his mind was free from unnecessary clutter, allowing him to focus on more important matters.
Fast forward over 75 years, and we now have tools to “unclutter” our brains. This concept is often called creating a “second brain,” and platforms like Notion, Evernote, or Obsidian allow us to offload information and organize it for later use.
I was on a call with a friend recently who gave me some fantastic advice, which I promptly forgot. When I asked her to remind me what she had said, we joked that we should have used Otter.ai to transcribe the call and send us notes afterward.
I’m not entirely sure if all this great technology will help us declutter our minds to focus on what truly matters or if it will make us lazy and lead to our brains atrophying. Until then, I guess I’ll just let my “second brain” remember for me—assuming I remember to use it. 🤔
Introducing: Anonymous Comments to the Editor
I’m excited to launch a new section of the HHHI newsletter: Anonymous Comments to the Editor. I was so happy to get unsolicited feedback on the newsletter and its content. It means people actually read it! Whoo hoo!
I don’t know if this will be a regular section, but I will include it when I get comments from the Hui. I am keeping it anonymous so people can speak their minds.
Let’s be clear: I do not necessarily agree with these viewpoints. Instead, I’m providing a platform for thoughts that might be controversial, uncomfortable, or simply worth discussing. If you read something here and disagree, that’s great! I’d love to hear why. If you send your thoughts to dan@sassato.com, they might just appear )(anonymously) in the next edition.
Let’s get started with some of the fun stuff-praise!
Praise
“I LOVE your project. Great job on your newsletter !!! I am a fan!”
“This is GREAT! I love it!!
“Congrats on the newsletter! Love the content!”
“Wow what great information”
“I really enjoyed the maiden voyage of your newsletter.”
Constructive Criticism
“When I click on the link rather than taking me to the latest issue, it sends me to the subscribe.”
“You’re missing the “t” in Lates“t” ”
“It went in my Spam first but I retrieved it”
Strong Opinions (Not Mine!)
“I generally agree with you on junk fees, but let’s not forget the biggest abuser of junk fees on the planet by far is the government. Generally the Feds, but state and local are great at getting their pound of flesh as well.”
“TAT pulls in well north of a billion that drops to the general fund and is wasted.”
“The HTA is a superfluous organization that has become highly politicized, [and] has lost sight of its mandate to promote Hawaiʻi”
“Lecturing prospective visitors is a turnoff. It’s time to end the calls for ‘mindful tourism’”
What do you think? Agree? Disagree? Fire back on these issues or others at dan@sassato.com, and your response might be featured anonymously in the next edition.
Business Wars' Hilton vs. Marriott Podcast
If you’re in the hotel space, a traveler, or just love a good business story, I highly recommend Business Wars: Hilton vs. Marriott from Wondery. It explores these two hotel giants’ history and decades-long rivalry: from humble beginnings as family-run businesses to global dominance.
It’s a fascinating listen—you’ll learn how the “asset-light” model came to be, the drama behind the Starwood acquisition, and plenty of other behind-the-scenes stories. You can find it on Spotify, Apple Podcasts, or wherever you listen. 😉
Hawai‘i Hospitality & Tourism Industry Events Calendars
The Hospitality Show, Hawaiʻi, Feb 27
Hawaiʻi Tourism Spring Update, March 5, 2025
HSMAI Lunch and Learn, with Michael Dominguez, President & CEO of Associated Luxury Hotels International, March 13, 2025
Travel Weekly Hawaiʻi Leadership Forum, April 15
Hawaiʻi Hotel & Restaurant Show, June 18-19, 2025
Aloha Hotel Industry Conference and Exhibition (AHICE Aloha), TBD
*If you have industry events to share, please email me at Dan@sassato.com
Spotlight on Hawai‘i Hospitality Opportunities
Hiring managers often ask me if I can recommend any strong job candidates. There is frequently a feeling that there is not enough talent here in Hawaiʻi. Of course, I beg to differ, and when I come across interesting roles, I plan on including them here:
Marketing Manager - Fairmont Orchid (Hawaiʻi Island)
Area Director of Leisure Sales - Hilton Hawaiian Village (Oahu)
Regional Director of Sales + Marketing - PM Hotel Group (Oahu)
Sales Manager - Four Seasons (Hawaiʻi Island)
Regional Director Condo Operations - Outrigger (Maui)
Regional Director of Sales - Springboard Hospitality (Oahu)
*If you happen to have any job openings, let me know. I will be glad to include them in the newsletter; just send the job link to dan@sassato.com.
About Us
Hawaiʻi Hotel Hui was started by hotel industry veteran Dan Wacksman, the CEO of Sassato, a Hawaiʻi-based consultancy combining deep local expertise with a global perspective to help hotels and travel businesses overcome challenges and thrive. With a team of seasoned industry professionals who call Hawaiʻi home, Sassato offers an intimate understanding of the market, culture, and key players, paired with decades of experience in marketing, revenue management, operations, technology, finance, and overall strategy.
While Hawaiʻi is our backyard, our global footprint enables us to bring best practices from around the world. At Sassato, we don’t just consult—we deliver results with a no-nonsense approach to getting sh*t done.
Recent engagements include brand transitions, system selection and implementation (e.g., website, booking engine, PMS, CRS, CMS, CDP), feasibility studies, competitive analysis, strategic planning, training, meeting facilitation, audits in marketing, distribution, and technology. If you need help, we’ll either assist you directly or connect you with the right experts. Our ultimate goal is to be a trusted partner and resource for Hawai‘i hotels.
