Aqua Hotels institutes ESOP

The chain becomes the first employee-owned hospitality chain locally

In an unprecedented move among Hawaii's hotel companies, Waikiki-based Aqua Hotels & Resorts has converted into the state's first employee-owned hospitality chain.

Mike Paulin: The hotel CEO and his wife, Aida, will share ownership of their company

With the finalization of an employee stock ownership plan, or ESOP, Aqua's 500 employees who are spread throughout 13 properties are now eligible to own a piece of the company along with owner and Chief Executive Mike Paulin and his wife, Aida.

The Paulins have agreed to share 30 percent of their company, valued at just more than $8 million, with employees. At a later time, the Paulins plan to allocate more ownership of Aqua, one of Hawaii's fastest-growing companies, to their employees.

"Aida (Mrs. Paulin) and I are sharing 30 percent of the company with our employees," Paulin said. "Each member of the Aqua ohana is eligible to become a co-owner of Aqua after a fixed vesting period."

Paulin, who founded Aqua in 2001, has long been a leader in Hawaii's hospitality industry. A former merchant seaman who sailed Hawaii's waters in the 1950s, Paulin helped to launch several Hawaii hotel companies, including Colony Hotels, Marc Resorts and Aston Hotels before starting Aqua.

Paulin said that his new employee-owned model will further motivate workers by giving them a "piece of the rock" for their labors and loyalty.

"I have no doubt that Aqua's ESOP will attract the best people in the industry to our organization, contributing further to our highly regarded service," he said. "Our ESOP comes at a time when Aqua's excellent customer satisfaction ratings are leading Waikiki hotels."

Currently, three Aqua hotels rank in the top 10 of the consumer-driven TripAdvisor ratings, and Aqua Waikiki Wave was awarded "Hawaii Region #1 Best Hotel Values for 2008" by Budget Travel magazine.

"Employee ownership is our way of thanking our ohana for making Aqua the Waikiki leader in guest service, and we're thrilled to make Aqua the first employee-owned hotel company in Hawaii," Paulin said.

The company will hold employee briefings to explain the ESOP's benefit and qualification process. There will not be any cost to employees to participate in the benefit.