[ ROOM WITH A VIEW ]
Hotelier Roy Kelley arrived in the islands on Black Friday, Sept. 29, 1929, when the stock market crashed. Teamwork gives
Outrigger a swell rideFrom a humble start, the hotel chain
today controls 12,000 rooms across the PacificBy Gregg K. Kakesako
gkakesako@starbulletin.comUnlike the market, his life in Hawaii went nowhere but up.
With his wife Estelle, Kelley worked to bring the dream of a paradise vacation in Hawaii within the reach of middle America.
A successful island architect who had a hand in designing Montague Hall at Punahou, the nurses' home at Queen's Hospital and Waikiki Theater, Kelley was drawn to building and renting apartments. Ultimately, he became Waikiki's largest landlord. This despite nearly losing his eyesight early in his life and a near-fatal accident in 1952.
The success of his billion-dollar hotel empire can best be described, according to adman John McDermott in his book "Kelleys of the Outrigger," as "the ability to build at a low cost. The talent to operate with the lowest overhead costs. The constant attendance to the business at hand. And a knack for attention to detail."
STAR-BULLETIN / 1974
Veteran hotel man Roy Kelley, right, and son Richard stood proudly in 1974 before what was then their newest hotel, the 356-room Waikiki Village.
McDermott adds: "What makes the difference in the Kelley success saga was diligent bifocal vision of a constant eye -- his good eye -- on the guest while never losing sight of the cigar box that held the day's cash."
His first building, a six-room apartment building at Seaside and Kuhio avenues in 1932, was the start of the largest hotel chain in Hawaii. That Spartan set of apartments has been transformed into Outrigger Enterprises, the largest lodging company in Hawaii and one of the fastest-growing lodging companies in the Pacific.
Currently, Outrigger operates or has under development 45 hotels and resorts and condominium units throughout the Pacific region, representing 12,000 hotel rooms and condominium units in Hawaii, Micronesia, Australia and the South Pacific. Outrigger Lodging Services, an affiliate, manages nearly two dozen hotels and resorts on the mainland.
Last year, Outrigger Enterprises unveiled its largest single project, a $300 million redevelopment project on 7.9 acres in the Lewers-Kalia area of Waikiki. That project is now before the city as it ponders Outrigger's request to condemn parcels of land surrounding the aging Outrigger hotel. Once the necessary permits are obtained, construction is scheduled to begin next year.
Over the past seven decades, the Outrigger has remained a family-controlled domain.
DENNIS ODA DODA@STARBULLETIN.COM
Outrigger President and CEO W. David Carey III stood last month in the lobby of the flagship Outrigger Waikiki.
"My grandparents worked together as a team," granddaughter Bitsy Kelley recalled in an interview last year. "My grandfather carried the bags for visitors, and my grandmother cleaned the rooms. My grandfather did not believe in debt and only spent what they earned. Together they saved enough to continue to open new hotels and build the Kelley legend."
Other members of the Kelley family still active in the business include her father, Dr. Richard Kelley, chairman of the board; aunt Jean Rolles, vice president of community relations; and a brother, Dr. Charles Kelley, who is in charge of special projects.
The 50-room Islander Hotel was to be followed by the Edgewater Hotel in 1951, the Reef Hotel in 1955 and the Reef Tower four years later. By 1986, with a room count of more than 7,000, the Outrigger chain was the largest in the state.
Roy Kelley died at the age of 91 on March 6, 1997. His wife, Estelle, followed him a year later, also at the age of 91.
The empire is managed by David Carey, a lawyer with an MBA who married Richard Kelley's daughter, Kathryn, when they were at Stanford University.
Established: 1947 Outrigger Enterprises
Key executives: Richard Kelley, chairman of the board; David Carey, president and chief executive officer; Perry Sorenson, chief operating officer
Number of properties: 45 hotels and resort condominiums in Hawaii and Pacific region
Number of rooms: 12,022
Number of employees: 3,000
Latest project: $300 million Waikiki Beach Walk development on 7.9 acres in Lewers-Kalia area
