Hawaii Hotel Hui Insider - Issue #4

April 15, 2025

Aloha !

Welcome to this month’s Hawaiʻi Hotel Hui Insider! 

When I started this newsletter as a passion project, I didn’t know who it would resonate with—but every month, more of you subscribe, read, reply, and pass it along—Mahalo for that.

If you’re enjoying the newsletter, please keep sharing!

This issue’s got a little of everything: HTA intrigue, hotel performance stats, big renovation news, airline optimism (maybe too much?), and the latest in Maui’s vacation rental showdown . Plus, some reader feedback—including one take I had to paraphrase just to keep it printable—and plenty more you’ll want to scroll for.

Let’s dive in.

Mahalo,

Dan Wacksman
Hawaiʻi Hotel Hui Insider Editor-in-Chief 😄

Move Over White Lotus—HTA Delivers the Real Island Drama

As many of you have heard, Mufi Hannemann has stepped down as Chair of the HTA board. This comes after a state audit flagged two of his affiliated nonprofits for receiving free use of the Hawai‘i Convention Center. No fraud was found, but the report revealed procedural gaps. 

Mufi resigned “to avoid distraction,” though it feels like some on the board were just waiting for a reason to nudge him out. Did you know all of the HTA Board Positions, including chair, are voluntary positions?  Reading through the issue's details, it felt like much ado about nothing. All this palace intrigue — with a volunteer board! 

Todd Apo, former Honolulu City Council chair, is now board chair. Meanwhile, interim CEO Daniel Naho‘opi‘i is also out, heading to a role at JLL (Congrats, Daniel, it sounds like a great role). Caroline Anderson, a respected HTA vet, will serve as interim CEO. A search for a permanent CEO has been underway for what seems like forever — though the position’s salary was just cut from $300K to $188K, which could shrink the candidate pool.

Some readers have called HTA dysfunctional and say it should be disbanded. Others argue that Hawai‘i still needs a strong tourism management body — just maybe not this one. Some even suggest folding it into DBEDT, though that may create more problems than it solves.

What do you think — does HTA need a reset? Total reimagining? Elimination? 

For those who are confused by the HTA, here is a quick, simple summary: 

  • Founded in 1998, the Hawai‘i Tourism Authority (HTA) is the state agency responsible for managing tourism and, more recently, destination management across the Hawaiian Islands.

  • Originally, HTA was funded through the Transient Accommodations Tax (TAT), a tax collected on hotel and vacation rental stays.

  • In recent years, the Legislature diverted TAT revenue into the state’s general fund, requiring HTA to seek annual appropriations, making funding less predictable.

  • HTA is governed by a volunteer board of directors appointed by the Governor, including industry professionals, state employees, cultural practitioners, and community leaders.

  • The board hires a CEO who oversees a small executive team and staff responsible for managing the agency's strategic priorities.

  • HTA does not directly run marketing campaigns — instead, it contracts with outside organizations, such as the Hawai‘i Visitors and Convention Bureau (HVCB) for U.S. market promotion, other partners for international marketing, and Kilohana for destination management. 

  • HTA also funds programs to support festivals, community events, and cultural initiatives.

Construction Delays? Who could have imagined?

What was supposed to be a one-year fix has turned into a two-year scheduling nightmare. The Hawaiʻi Convention Center’s long-delayed $64 million roof replacement—along with a slate of other upgrades—will now stretch through 2027, putting millions of dollars in group travel at risk. The HTA has issued an RFP and is scrambling to juggle 18 major citywide events over the two-year span, working with organizers to shift dates or find alternate venues somewhere in Hawaiʻi. To give you an idea of the impact, the Rotary International Convention was expected to bring in $35-$40 million to the local economy. The Legislature first punted on this in 2017—when the price tag was half as much. Now we’re paying for that lack of foresight, literally.

PacRim’s Next Chapter: Dave Erdman Steps Down as CEO, VectorUSA Emerges

Dave Erdman, longtime CEO of PacRim Marketing Group, who helped hotels reach the Japanese, Korean, and Chinese markets, is stepping down from his role as CEO. Dave sold the company to Vector back in 2017 but continued to lead the business through its transition, the pandemic, and growth in the years that followed. Toshinari Katsura, representing Vector, will assume the CEO role moving forward, and the company will be rebranded VectorUSA. Dave will remain involved in an advisory capacity.

Having known and worked with Dave for many years, I’m sad to see him leave the day-to-day leadership but thrilled that he’ll now have the chance to take some well-deserved time for himself. Otsukaresama Deshita, Dave-san. 

Moana, Ka Laʻi, Fairmont Roll Out $250M+ in Hawaiʻi Hotel Renovations

Moana Surfrider Plans $70M Makeover for 125th Anniversary

The Moana Surfrider is marking its 125th anniversary with a $70 million renovation, which is already underway. Rolling out in phases through spring 2026, the project includes refreshed guestrooms, a revitalized historic lobby, and a new oceanfront event space. While it’s a far cry from the previously proposed—and highly contested—plan to demolish the Tower Wing and build a 26-story tower, it’s still a major investment in one of Waikīkī’s most iconic hotels. Hopefully, they locked in the materials cost before the tariffs! 

Former Trump Waikīkī - Now LXR to Undergo $100M Makeover

Ka Laʻi Waikīkī Beach (you might remember it as Trump Waikīkī) is rolling out a $100 million renovation starting June 2025. According to the press release, it will include guest rooms and suites, public areas such as the pool, and both signature restaurants along with the spa, fitness center, and landscaping.  The completion dates are slated for Q2 2026 (which seems very quick to me for a large-scale reno!). This is the first major renovation since it opened in 2009. The property is under the LXR Hotels & Resorts brand (a Hilton Soft brand). Like Moana, the property will remain open during the renovation.

I bet your Hotel Does not have a Gold Floor!

The Fairmont Orchid on Hawaiʻi Island is nearly done with a top-to-bottom renovation touching everything from guest rooms to the private “Gold Floor” and meeting spaces. No dollar amount was disclosed, but they’re calling it “transformative”—and judging by the updates, it’s more than just a new carpet. And if my friends at Fairmont are reading, that Gold Floor sounds intriguing (hint, hint 😉).

Hawaii's Fairmont Orchid unveils 'transformative' renovation

Maui’s Vacation Rental Crackdown Stalls

Maui Mayor Richard Bissen’s bold plan to phase out more than 7,000 short-term vacation rentals and convert them into long-term housing is facing major delays. Originally set to begin this July, the proposal hasn’t even made it onto the County Council’s agenda. Council members say they’re waiting for more economic impact data—though a study meant to inform their decision has yet to materialize.

The delay leaves the future of Maui’s vacation rental market and its role in the island’s broader housing crisis in limbo. For now, the status quo remains, and so do the tensions between housing needs and tourism economics. Mayor Bissen was quoted as saying, “How strange is it that we have more housing for visitors than the people who live here?”

Mainland Carriers Expand Hawaiʻi Routes — But Will the Boom Last?

Delta and American Airlines are doubling down on Hawaiʻi this winter, adding new and expanded service across multiple islands. Delta will launch nonstop flights between Salt Lake City and Kona starting December 19, alongside a second daily Salt Lake–Maui route during peak travel season. Additional flights from Atlanta and year-round service from Minneapolis to Honolulu round out Delta’s 22-route winter schedule to the Islands.

Not to be outdone, American Airlines is adding new routes from Chicago to Honolulu and resuming service from Dallas-Fort Worth to both Kona and Kahului. By winter, American will operate more than 15 daily flights to Hawaiʻi from the mainland.

It’s a clear bet on continued demand for Hawai’i — but with flashing warning signs of an economic slowdown, these plans may be short-lived.

Hotel Performance

Check out Powell & Aucello’s monthly newsletter for more destination data and development news.

If I hear the word one more time…

Since our last issue, Trump has implemented his promised tariffs—then he didn't, then he did again... Honestly, it's hard to keep track, and the markets seem just as uncertain. If the market is a leading indicator of what to expect, it looks like we're in for a rough ride.

The combination of an antagonistic approach and these tariffs has already deterred many international travelers from visiting the U.S. Now, we might be facing a triple whammy: declining international visitors, eroding domestic consumer confidence, and the looming potential of a recession.

On a positive note, the price of eggs is down from the peak. Who wants to retire when you can have a cheap omelet?   

HotelTonight Adds a Twist—Earn Airbnb Credit While You Book Hotels

HotelTonight, the mobile-first booking app Airbnb scooped up back in 2019, has mostly been hanging out on the sidelines—less deep integration, more red-headed stepchild (okay, let’s call it the ignored sibling for 2025). But in a move to blur the lines and drive some cross-promotion, HotelTonight just rolled out a new perk: 10% Airbnb credit on every hotel booking. It’s part of their HT Perks program. It is interesting to incentivize hotel bookers with vacation rental credits.  With HotelTonight's small scale, it is doubtful it will move the needle.

Agentic AI Just Took Its First Swing at Hotel Bookings

Remember that "agentic AI" we flagged last issue? Well, it’s already making moves. Perplexity has teamed up with Selfbook and Tripadvisor to let users search and book hotels instantly, all within the platform. No tabs, no redirects—just one AI-powered flow from questions to confirmation. Hotels are the first focus, but it’s clear this is about reshaping how people plan and purchase travel. If this sticks, it could mean fewer clicks—and fewer chances—for hotels to capture the booking.  I tested it out, and it was not quite ready for primetime as I was unable to go past getting rates, but you can certainly see where it is going. 

On a personal note, ChatGPT has become my go-to travel planner. I created a custom Travel Agent GPT tailored to my preferences and use it as an advisor to help plan trips. I still have to leave the platform to make the bookings, but you can see how the next step in agentic AI is taking over the full process, start to finish.

Note: A GPT is a customized version of ChatGPT that you set up to follow specific instructions, tone, and tasks—like having an AI assistant built just for your needs. As an example, I have customized GPTs for Travel, Taxes, Investments, Health, etc.

Booking.com Gets a Little More Agentic

Not to be outdone, OpenAI is now deep in the trenches with Booking.com, helping the travel giant test how generative AI can actually improve search and planning. It's not just about typing “hotels in Paris” and getting a list—it’s more like, “Family of four, Northern Europe, likes craft beer, mid-budget—go!” And then the AI does its thing. These “agentic” experiences (yep, that buzzword again) are still early, but they’re shifting traveler behavior. People start typing longer, richer prompts because they’re starting to believe the tool can handle it. For hotels, this could reshape how and where your property even shows up in a traveler’s journey.

Anonymous Comments to the Editor

I am so happy when I get feedback, even when people disagree or point out things I messed up - at least I know they are reading. Thanks for the feedback!

  • “The concept and information you deliver are incredible!”

  • “Another great read! Thank you.”

  • “HHA = Hawaii Hotel Alliance. Some sensitivity there.” (We mistakenly said Hawaii Hotel Association.)

  • “TV tip. If you haven’t seen Hacks, you should check it out. It’s laugh-out-loud funny.”

  • “Nice tip on using Notebook LM. I actually did the same [for a presentation], and it certainly makes a static presentation much more digestible.”

  • “Definitely fills a void and the information coming from a reputable source with you adding opinion and color to various news points.”

Okay, saving the most controversial one for last. This one’s paraphrased—not quoted directly—because the original was very strongly worded. I’ve softened it a bit, but the core sentiment remains. (Pretty sure I’ll hear from the author if I missed the mark 🙂.)

  • “When the slowdown comes, Hawai‘i’s heading for a reckoning. We need to rethink the value we’re offering because more travelers are starting to feel like the destination isn’t worth the premium. And all the climate resiliency talk? It’s a slow-moving crisis that needs real, strategic investment—just like we managed with the stadium, convention center, and even the natatorium. We’ve solved big problems before. Time to do it again.”

Special thanks to Blake from Mauna Lani, Auberge Resorts, for flagging a send issue and helping me troubleshoot a problem that would’ve kept me up all night—seriously, a lifesaver (and clearly a fellow Type A).

What do you think? Agree? Disagree? Write back on these issues or others at [email protected], and your response might be featured anonymously in the next edition. 

Cirque in Waikīkī: A Surprising, Spectacular Night Out

OK, I’m biased when it comes to all things Outrigger — I spent a good part of my career there and will always have a soft spot for the Kelley family legacy and my many friends still with the company. So when my former boss and Outrigger CCO, Sean Dee, invited me to check out the new Cirque show, Auana,  I was excited to head back into Waikīkī.

First off, I was blown away by what they’ve done with the space. I remember seeing magician John Hirokawa make a car appear out of nowhere in the old, somewhat dingy showroom years ago — and I’ve seen it sit completely empty for years. But they’ve transformed it into a sleek, purpose-built venue for Cirque, and it’s seriously impressive.

I’ve seen a few Cirque shows before, and this one didn’t disappoint. Honestly, I expected a bit of kitsch, but it was beautifully done. Classic Cirque feats were woven into a story of Hawaiʻi’s history with local performers in a way that worked — OK, maybe the couple on roller skates were a stretch — but the show was mesmerizing. At times, there’s so much happening on the stage and around the theater, you don’t know where to look. It is definitely worth seeing more than once to catch all that is going on. 

I highly recommend this one for both locals and visitors. A couple of tips: They offer great kamaʻāina rates, and there’s not a bad seat in the house, so no need to splurge for the most expensive seats.

Plane Movies

As we all know, living in Hawaiʻi means we’ve gotta log a lot of miles to get anywhere. Last month, I flew to the East Coast for work, and for the first time in a while, I actually caught a great movie—Nickel Boys. Honestly, about 90% of the movies I see these days are on planes, so when one stands out, it really sticks with me. I hadn’t heard much about this one beforehand, but it really moved me. Afterward, I looked it up and saw that it was actually nominated for an Academy Award.

If it happens to be on your next flight—or if you’re looking for something solid to stream—I highly recommend giving it a watch.

Hawai‘i Hospitality & Tourism Industry Events Calendars

*If you have industry events to share, please email me at [email protected]

Spotlight on Hawai‘i Hospitality Opportunities

This is only the fourth issue of this newsletter, and in the first three, there seemed to be plenty of Hawaii jobs that came across my desk, but in the past month, I have seen few new job listings.  I wonder if this is a harbinger of things to come.  

*If you happen to have any job openings, let me know. I will be glad to include them in the newsletter; just send the job link to [email protected].

About Us

Hawaiʻi Hotel Hui was started by hotel industry veteran Dan Wacksman, the CEO of Sassato, a Hawaiʻi-based consultancy that combines deep local expertise with a global perspective to help hotels and travel businesses overcome challenges and thrive. With a team of seasoned industry professionals who call Hawaiʻi home, Sassato offers an intimate understanding of the market, culture, and key players, paired with decades of experience in marketing, revenue management, operations, technology, finance, and overall strategy.

While Hawaiʻi is our backyard, our global footprint enables us to bring best practices from around the world. At Sassato, we don’t just consult—we deliver results with a no-nonsense approach to getting sh*t done.

Recent engagements include brand transitions, system selection and implementation (e.g., website, booking engine, PMS, CRS, CMS, CDP), feasibility studies, competitive analysis, strategic planning, training, meeting facilitation, audits in marketing, distribution, and technology. If you need help, we’ll either assist you directly or connect you with the right experts. Our ultimate goal is to be a trusted partner and resource for Hawai‘i hotels.