The union representing workers at the Sheraton Princess Kaiulani and Moana Surfrider hotels filed a lawsuit yesterday against proposed redevelopment at the properties.

Unite Here Local 5 is alleging that Kyo-ya Hotels & Resorts LLP's environmental impact statement for the project is faulty. The union alleges that Kyo-ya presented inaccurate and incomplete information about the projected number of jobs the development would create.

The company's redevelopment plans include adding residential condominium units to both properties, something the union says could endanger current jobs.

The lawsuit says the impact study was “;overly optimistic, unrealistic and unqualified”; in its assessment of employment benefits. The union currently has about 850 workers at the two properties.

“;The project will result in a net loss of hotel rooms in Waikiki, but an increase in residential units,”; the lawsuit states.

  Hotel workers file suit to stop renovation

 

Union workers at the Moana Surfrider and Sheraton Princess Kaiulani Hotels are suing the company to stop redevelopment projects over job concerns.

 

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The union also says that Kyo-ya should apply for Special Management Area permits for both hotels, not just the Moana Surfrider. One of the reasons is because since both properties use the same parking areas. SMA permits regulate development as part of Hawaii's coast zone management program.

Ernest Nishizaki, Kyo-ya's executive vice president and chief operating officer, said the company remains committed to the visitor industry's sustainability and its workers.

“;The redevelopment of the Princess Kaiulani and the Diamond Head Tower will enable us to reposition our hotels for our guests and to create long-term work opportunities,”; Nishizaki said in a prepared statement. “;We value all of our associates and have and will continue to work with the leadership of Local 5 toward our mutual goal of continued and better employment opportunities for our associates.”;

Plans for the 6-decade-old Princess Kaiulani call for the removal of two existing towers, retail structures, a parking area and other amenities. The current Ainahau Tower will be renovated, and a new 33-story Pikake Tower promises 210 condo-hotel suites and 61 fee-simple residences.

A new 24-story Diamond Head Tower on Kalakaua Avenue will have 185 hotel rooms and 40 fee-simple residential units.

Majority owner of Kyo-ya is Cerberus Capital Management in New York. Kyo-ya controls more than 4,000 hotel rooms and suites in Waikiki.

The city Department of Planning and Permitting has a June 1 hearing scheduled to accept public comment on the redevelopment plan.

“;We support renovating our hotels so guests keep coming back and so our construction workers can have jobs, but we don't want to see hotel rooms get turned into condos,”; said Godfrey Maeshiro, a bellman at the Princess Kaiulani hotel. “;We don't want to lose guest rooms in Waikiki that we might never get back.”;