Outrigger to manage Pacific Beach Hotel
Hotel owner HTH Corp. is making an alliance with a local competitor
HTH Corp., one of Hawaii's largest private hospitality companies, has brought in the locally based Outrigger Enterprises Group to manage its flagship Pacific Beach Hotel and enhance global branding of the property.
The Hayashi family will continue to operate HTH's other two properties, the Pagoda Hotel and King Kamehameha's Kona Beach Hotel on the Big Island.
The 837-room Pacific Beach Hotel, which became part of the HTH chain when late owner Herbert T. Hayashi acquired it in 1970, will not change its name under the agreement with Outrigger.
The Pacific Beach sits at the corner of Kalakaua and Liliuokalani avenues, a strategic Waikiki location, but it didn't become an Oahu landmark until 1978, when Hayashi added a 280,000 gallon, three-story indoor oceanarium -- the largest such structure in the state.
From its prime location near Kuhio Park, the Pacific Beach Hotel is surrounded by more formidable national hotel chains; the hotel is sandwiched between the Waikiki Marriott and the Hyatt Regency.
In recent years, most of Waikiki's strategic locally owned properties have been acquired or put under management contacts with larger industry players, said Murray Towill, president of the Hawaii Hotel & Lodging Association. The trend toward brand consolidation in the hospitality industry has made it more difficult for smaller owners to compete, Towill said.
"There has been consolidation within the industry around the world making it harder for an independent company to compete," Towill said. "Forming a management relationship between Outrigger and Pacific Beach Help is a logical step for both companies."
Outrigger was a natural management choice for Pacific Beach Hotel both because it is the largest kamaaina hospitality company in Hawaii and because Hayashi, who died last November, and Outrigger's founder Roy Kelley were friends as well as competitors. Some employees recall that the two hospitality executives would often meet for lunch or coffee at HTH's Pagoda Hotel.
"We have chosen Outrigger Enterprises Group because it is a good fit for us," said Corine Hayashi, HTH's president and chief executive. "My father, Herbert T. Hayashi, and Outrigger's founder, Roy Kelley, were visionaries in the development of the state's hospitality industry and now we have joined together to make the Pacific Beach Hotel even more successful."
Following the management change, slated to take effect on Jan. 1, Pacific Beach Hotel employees will be hired under a new management agreement, Hayashi said. All workers will be offered the opportunity to transfer, she said.
Last year the hotel's workers voted to organize under the ILWU Local 142; union representatives could not be reached for comment yesterday.
Outrigger spokeswoman Nancy Daniels said that although the hotel properties the company owns are all nonunion, the company does manage other union properties.
By adding Pacific Beach Hotel to its management holdings, Outrigger has gained a larger share of strategically placed Waikiki hotel rooms, said David Carey, president and chief executive officer of Outrigger Enterprises Group.
"The hotel offers one of the best locations in Waikiki -- just across Kalakaua Avenue from world-famous Waikiki Beach -- with a 37-year legacy of excellent service," Carey said.
Outrigger aims to reposition Pacific Beach Hotel as one of Waikiki's top-tier properties, Carey said.
"With Outrigger's advanced technology, systems and global marketing, I believe we will be able to build on a strong history of guest service and continue the success of the Pacific Beach Hotel," he said.
