Artist rendering courtesy of Hilton
A ground-breaking ceremony was held yesterday for
Kalia Tower, a 24-story, 453-room high-rise on the
former Hilton Dome site, located at the Hilton
Hawaiian Village entrance.

---

New Hilton
hotel called a
commitment
to Hawaii

The $95 million Kalia
Tower is due to open in
the spring of 2001

By Peter Wagner
Star-Bulletin

There they were, the governor, mayor, speaker of the house, council chair and numerous other dignitaries, lined up at a ground-breaking ceremony for the first commercial hotel to be built in Waikiki in nearly 10 years.

"The Hilton is showing some leadership," said Gov. Ben Cayetano. "I hope other investors will follow."

Top executives of Beverly Hills, Calif-based Hilton Hotels Corp. yesterday announced plans for a 24-story, 453-room high-rise on the site of the former Hilton Dome, at the entrance to the Hilton Hawaiian Village on Kalia Road.

"We see this project as more than an investment in the Hilton Hawaiian Village," said Dieter Huckestein, president of hotel operations for Hilton Hotels. "It's a tangible demonstration of Hilton's commitment to Hawaii and, more specifically, Waikiki."

The $95 million Kalia Tower, targeted to open in the spring of 2001, will join an existing complex of four hotel towers totaling 2,545 rooms. Also on the 20-acre site is a conference center; a complex of 40 shops and restaurants; and a 1,800-stall parking structure.

The project is to create 1,400 construction jobs and 100 permanent hotel positions.

"It's been a long time coming," said Hawaii Chamber of Commerce President Stanley Hong, among about 200 people at yesterday's ceremony.

Mayor Jeremy Harris said the project will help lead the way toward a revitalization of Waikiki, a "mature tourist destination" showing its age against a dwindling visitor count.

About 6.74 million visitors came to Hawaii last year, down 2 percent from 6.88 million in 1997, according to state records.

"There are a lot of sites in Waikiki crying for redevelopment," said Harris, who is spearheading a $40 million city effort to revitalize Waikiki in the next 12 months. The work is to include gas street lights along Kalakaua Avenue, hanging flower baskets, underground electrical wiring and other changes meant to enhance Hawaiian culture.

The new hotel, to target conventioneers and business travelers, is well-timed to take advantage of a new seven-year property tax break for new commercial projects. The recently passed bill was authored by Harris.

Among features of the new tower will be a three-level "health and wellness spa" providing a pool for outpatients, acupuncture, chiropractic, massage and other healing therapies.

Huckestein said the spa will target an "emerging market" for travelers with medical needs.

Each room in Kalia Tower is to have a work space, including fax machine and dual hookups for phone and computer.

Huckestein said Hilton's new investment is a gamble at a shaky time in Hawaii's tourist industry.

Occupancy at the Hawaiian Village is currently at about 75 percent, but the company is committed to the rebirth of Waikiki, he said.

"Waikiki needs to be re-energized, refocused," he said. "And I hope we can be used as a catalyst."