Hilton backs out of deal to manage the Wyland
Outrigger Enterprises will take Hilton's place as operator of the 404-room hotel
Hilton Hotels Corp. is terminating an agreement to manage the Wyland Waikiki hotel, blaming delays in securing a restaurant operator and building a fitness center.
Outrigger Enterprises Group has agreed to manage the 404-room hotel, owned by WB-LCP Kuhio Owner LLC, an investment group led by Chicago-based Lodging Capital Partners LLC.
The Wyland Waikiki will operate as its own hotel brand.
Hilton said rescinded its management contract after negotiations between the owners and a private restaurant operator fell through and construction delayed the building of a fitness center, both required for the hotel to be under Hilton's Doubletree brand.
"It didn't work out and it's just been delayed for too long," said Gary Seibert, area vice president and managing director for Hilton Hotels in Hawaii. "We can't make exceptions on the brand standard."
The opening of the hotel on the corner of Kuhio and Royal Hawaiian avenues, which is at the center of lawsuits related to construction defects leading to mold, has been delayed for nearly six months.
The hotel opened 36 rooms on two floors last October, but was closed shortly thereafter when mold was discovered in the rooms. Hilton began taking reservations last year and has since accommodated Wyland guests at the Hilton Hawaiian Village.
Lodging Capital said the company has completed remediation of mold-infested areas and is preparing to resume operations sometime next month.
The hotel still plans to open a restaurant and build a fitness center, but a date hasn't been determined for either.
Despite the hotel's delayed opening, Outrigger is confident in the potential of the boutique hotel, which showcases artwork by marine life artist Wyland.
"The Wyland Waikiki Hotel is a gem," said David Carey, Outrigger president and CEO.