Former Aston
hotel chain
has big plans

The company, which is
rebranding itself, aims
to buy more properties

Aston Hotels & Resorts, one of Hawaii's oldest hotel companies, said yesterday it likely will acquire more properties and begin breaking into the upscale home-rental market as it changes its trade name to ResortQuest Hawaii.

The rebranding, which began seven years ago when Aston was purchased along with 13 other companies by Memphis, Tenn.-based ResortQuest International, is meant to strengthen the hotel chain's position in the travel industry by advancing it from a regional to a national player with more resources.

ResortQuest, the largest U.S. manager of vacation rental properties, recently announced its intention to double the size of the company within the next three years. Similar growth is expected for Hawaii, said Kelvin Bloom, president of ResortQuest Hawaii.

"We expect to grow the company very aggressively here and on the mainland as well," Bloom said.

ResortQuest, a subsidiary of Gaylord Entertainment Co., the operator of the Grand Ole Opry, manages nearly 20,000 vacation homes and condominiums on the mainland and Canada.

Aston formerly was Hawaii's second-largest privately owned hotel operator after Outrigger Hotels & Resorts. It was founded in 1967 by the Tatibouet family, which had been in the hotel business in Hawaii since opening a small Waikiki hotel in 1948.

Principal owner Andre S. Tatibouet sold Aston to ResortQuest in 1998 for nearly $30 million, plus 1.7 million shares of ResortQuest stock, and later left the business following disputes over the use of the Aston name.

A legal battle ensued but until now ResortQuest in Hawaii continued to operate as Aston, a separate regional brand. Tatibouet could not be reached for comment.

By forming a unified national brand with ResortQuest, the former Aston Hotels & Resorts Hawaii can compete more aggressively with larger hotel brands, said Murray Towill, president of the Hawaii Hotel & Lodging Association.

"Over the long term, this will be beneficial to Hawaii," Towill said. "The national assets that Gaylord Entertainment brings to the table will help position the company to compete against other mega-companies that have consolidated brands."

In recent years, brand consolidation has become an industry standard, Towill said.

"It allows companies to maximize their strength and power and operate more efficiently," he said.

ResortQuest Hawaii manages 28 properties in Hawaii. During the past year, Aston has been readying its crew of 1,500 employees for the brand change, Bloom said. All workers will keep their jobs. Aston Hawaii also has been notifying travel and business partners of its rebranding.

"Aston Hotels & Resorts Hawaii has contributed greatly to the strength of Hawaii's visitor industry," said state Tourism Liaison Marsha Wienert. "We look forward to their continued growth under the new name of ResortQuest Hawaii, and we wish them every success."

The recent $107 million acquisition of the former Aston Waikiki Beach Hotel, which was completed June 1, is only the start of ResortQuest's investment in Hawaii, Bloom said.

ResortQuest's strength in the relatively new market for upscale home vacation rentals is likely to further buoy that business in Hawaii, Bloom said.

While ResortQuest is an emerging brand, it has the market cornered on luxury home rentals, which can rent for up to $50,000 a week. The company's Hawaii holdings and the state's visitor industry will benefit by having the opportunity to pull from a higher-spending pool of guests.

"We'll be able to tap into (ResortQuest's) database of about 7 to 8 million guests," Bloom said. In the past, Aston did little direct marketing and instead relied almost exclusively on travel agent, wholesale and travel trade business, he said.

The potential for Resort-Quest Hawaii to attract higher-paying guests is good for the state, which relies on the private sector to bolster its marketing efforts, said Frank Haas, marketing director for the Hawaii Tourism Authority.

"We spend money to market Hawaii, but the private sector spends five times what we do," Haas said.

The strength of the state's visitor industry makes it a good time for ResortQuest Hawaii to rebrand, he said.

"Rebranding is always a challenge, especially for a strong brand," Haas said. "However we are having a record year, so it's a great time to take a long-term view."