Waikiki Marriott exec says
sale won’t hurt employees

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By Russ Lynch
rlynch@starbulletin.com

Marriott International Inc.'s sale of the 1,308-room Waikiki Beach Marriott Resort to a mainland investment partnership will not affect the hotel's employees, its customers or its business, according to Marriott's top executive in Hawaii.

The $130 million sale to Florida-based CNL Hospitality Corp., announced yesterday, is part of Marriott's strategy of managing and marketing hotels but letting others own them, said Stan Brown, Marriott vice president for the Pacific Islands area.

"Clearly, our goal is not to own the real estate," Brown said. There could be more Hawaii sales in line with that strategy, he added.

Marriott bought the hotel, the former Hawaiian Regent across Kalakaua Avenue from Kuhio Beach, for $125.5 million from Otaka Inc. in November. The company will keep a minority interest in the ownership and manage the property for the new owners.

Brown said CNL has a strategy of buying and holding properties, while Marriott manages and markets in the hospitality business, and the strategies work well together.

The hotel has 604 part- and full-time employees. About 500 of them are represented by Local 5 of the Hotel Employees & Restaurant Employees union. The hotel was not part of the recently concluded master contract that the union signed with Waikiki hotels, and negotiations are under way for a new contract, Local 5 officials said.

Marriott International and its various hotel divisions also manage the Ritz-Carlton Kapalua on Maui and the Kauai Marriott Resort, among other Hawaii properties.