Hawaii Hotel Hui Insider - Issue #6

June 17, 2025

Aloha !

Welcome to this month’s Hawaiʻi Hotel Hui Insider. 

I wasn’t sure what would come of this little experiment when we kicked off back in January. But here we are—Issue #6, six months in, and we are still at it, and have exceeded our expectations. What started as a way to share thoughts with a small group has grown into a real community. At this point, the subscriber list has gone well beyond my family and friends (though thanks, Mom).

If you’ve been enjoying these issues, I’d be grateful if you passed them along to a colleague or friend. More voices make for a stronger hui!

Since this seems to be sticking, I figured now’s a good time to introduce the "team" behind the curtain. That would be me…and Dylan.

Dylan is my son, a recent University of Miami grad, and before you ask the most common Hawaii question, he’s a Kaiser High alum. After college, he spent two years in Spain and now calls Tokyo home. Clearly, he tries to move as far away from me as possible. 😣 He’s been helping me on a handful of projects, including this one, which has become our passion project: building a no-BS, community-first hub for Hawaiʻi’s hotel and tourism pros.

As for me, I’m based in Honolulu, where I run Sassato, a hotel and travel consulting company with clients from Hawaiʻi and around the world. Before starting Sassato, I was SVP of Marketing at Outrigger Resorts & Hotels, chaired the national HSMAI Marketing Advisory Board, sat on (and still sit on) the HVCB Marketing Advisory Board, wrote the industry-leading book on Hotel Digital Marketing, and a few other things I’ll spare you for now. Before that, I was in China overseeing… well, that’s a longer story for another time (or a drink). If you’re still reading or have any interest, feel free to have a look at my LinkedIn profile (and please connect with me if we haven’t already.) 

Getting to work with Dylan on this project has been a real highlight. During a recent business trip to Japan, we even managed to catch a Tokyo Giants game—proof attached.

Thanks for sticking with us these past six months. We always love hearing from our readers—whether it’s corrections, opinions, story ideas, or just a quick aloha. You can reach us directly at [email protected] and [email protected].

Oh, and one more thing—we recently launched the Hawaiʻi Hotel Hui LinkedIn page. It’s a place where you can share thoughts, add your voice to the conversation, and weigh in on some of the topics we cover here. Join the hui on LinkedIn!

Let’s dive in.

Mahalo,

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

Jerry’s Not Done Yet

On the left, Elliot Mills, and on the right, Jerry Gibson.

When I saw a GM job posting for the Marriott Waikiki, I had to double-check. Jerry Gibson was still in that role—wasn’t he? Turns out, he’s stepping down as GM, but not stepping away. He’s teaming up with fellow industry heavyweight Elliot Mills to launch Hawaiʻi Hospitality Group (HHG), a new asset management and advisory firm rooted in local insight and operational muscle.

Mills (ex-Aulani and Disneyland Resort) will serve as CEO; Gibson (Marriott, Hilton, Hyatt, Blackstone) is president. Their first clients? Marriott Waikiki, Hotel Wailea, and Kaimana Beach Hotel - clearly, they do not mess around! HHG is also bringing together a who’s who local advisory board—think Roy Yamaguchi, BJ Kobayashi, Kevin Aucello, and others—for a full-spectrum approach to asset management.

Jerry’s not riding into the sunset—he’s just switching from GM to owner’s rep, with a bigger toolbox and an even broader impact.

Aloha Tokyo, Aloha Hope

Japan sent 1.5 million visitors to Hawai‘i in 2019. In 2024? We’re not even at half that. But if Aloha Tokyo was any indication, the passion for the islands is alive and well.

I was in town for WiT Japan & North Asia, but the aloha was at Ebisu Garden Place, where tens of thousands gathered for ALOHA TOKYO, a three-day celebration of all things Hawai‘i. The only hotel brand showing up? Outrigger. Full sponsor, full presence, full commitment. I caught up with the crew—Sean Dee, Danny Ojiri, Luana Maitland, and more. Great to see the local ‘ohana flying the flag abroad.

Even the rain couldn’t wash out the vibe, but by Sunday, it was all sunshine, shaved ice, and long (very Japanese) queues for hula shows, Hawaiian snacks, and selfies with familiar faces. There was real buzz around Auana, the Cirque du Soleil show at the Outrigger Beachcomber. I’ve seen it—it lives up to the hype. And of course, Lilo and Stitch. The line to take a picture with a Stitch statue was insane!

The trip left me hopeful. Japan’s recovery is slow, yes—but the desire is there. As exchange rates stabilize and flights (hopefully) return to pre-pandemic volume, demand should follow. However, it will probably be a few more lean years before it does.

Who’s Steering the Canoe?

Senate Bill 1571 was signed into law (Act 132), and HTA’s board has officially been downgraded to “advisory” status, stripped of policy-making authority, with HTA being folded deeper into the arms of the executive branch, with a side of legislative oversight.

The CEO no longer answers to the board. Instead, they report directly to the governor, and their appointment requires Senate confirmation. The board still nominates the CEO, but let’s be real, this isn’t their show anymore.

Other notable shakeups:

  • DBEDT’s mandatory seat on the board? Gone. Now, at least one board member must represent a “tourism-impacted entity”—translation: someone who sees the visitor industry’s effects up close.

  • The Senate President and House Speaker now get board picks, giving the Legislature more say than ever.

  • And HTA must write a contract for the CEO’s term, which sounds basic but apparently wasn’t standard practice.

For now, HTA’s still hunting for a permanent CEO. Interim CEO Caroline Anderson is holding the reins after Daniel Nāhoʻopiʻi’s exit to JLL, while board chair Todd Apo stepped in post-Mufi, who left the chairmanship amid an audit, but still holds a board seat (whew!). Who will make up the board going forward (and who will want to serve) is anyone’s guess. 

HTA Powers and Operations 
The HTA retains many operational functions (e.g., contracts, promotions, staffing) but must now coordinate more directly through its CEO with the Governor and Legislature.

Bottom line: HTA isn’t dead, but it’s now boxed in by legislative rails and executive oversight. Because, you know, more bureaucracy always helps things. The drama continues into season 27 (established in 1998). 

Brand Changes, Management Swaps, and the Loss of Local Control

Highgate’s out at the Renaissance Honolulu (299 rooms), Crescent’s in. Never heard of Crescent? They’re a mainland player making their Hawaiʻi debut. It is fairly unusual (at least in Hawaiʻi) for Highgate to lose a management contract. 

Highgate changed the game back in 2011 by replacing Outrigger from the Courtyard Waikiki (formerly The Wyland, formerly Waikiki Surf). After this, Highgate rapidly brought under management a number of Hawaii properties. 

Before Highgate, most managers were local companies like Outrigger, Aston, and Aqua. They held their ground because they understood what made this market tick (and didn’t try to run Hawaiʻi like Poughkeepsie).

Now? The previously local companies are now mostly owned by mainland firms. Springboard (Hotel Equities), Aqua-Aston (Marriott Vacations), and Outrigger (KSL Resorts). Everyone seems to have a continental boss. Besides Castle Resorts and Hotels and MacNaughton, there don’t seem to be many truly local management companies. 

But at the end of the day, does HQ's zip code matter? Maybe not. If your team knows Hawaiʻi and your tech and overall approach are solid, then there are no real barriers to success.

In related news: The 368-room Romer Waikiki at the Ambassador is now The Ambassador Hotel Waikiki, part of Hilton’s Tapestry Collection. After a sale and significant renovation, the hotel operated under Highgate’s Romer Neighborhood Hotels, a brand launched in 2022. This shift leaves just one Romer on the books (Hell’s Kitchen, NYC). Losing Waikīkī, which was meant to be a flagship, feels like a hit, though the Marriott Edition brand overcame a disastrous start when the Waikiki Edition famously changed management companies overnight, so maybe Romer still has a shot. Odds are ownership wanted broader distribution, and Hilton’s soft brand won out.

As we mentioned in February, Maui Seaside (managed by Springboard) is also rebranding to Tapestry. That’s two former independents in a row. Maybe soft brands are the new safety net?

Credit to my friends at Powell & Aucello for the details in this update. They also have a great monthly newsletter with a focus on development and performance, you can find out more here.

Views from the rebranded Ambassador Hotel of Waikiki, Tapestry Collection by Hilton

Big Island, Big Refi

Fairmont Orchid

Mirae Asset just secured a $136M refi for the 540-key Fairmont Orchid, with JLL brokering the deal and New York Life Real Estate Investors funding it. The resort’s in the middle of a $110M facelift, with Phase 1 wrapping this year—aimed at pushing rates, RevPAR, and ROI up the Kohala Coast.

A $300 ADR at a Hampton Inn?

Hampton Inn & Suites Maui North Shore

Peachtree Group is the owner of the new Hampton Inn & Suites Maui North Shore (a Hilton brand), which is now open in Kahului, bringing 136 rooms, ocean views, and a design that nods to the area’s history and culture. Operated by Springboard Hospitality, the hotel sits on the former Maui Palms site. Checking the websites, we noted that summer rates are starting at over $300 a night, not bad for a brand that usually comes in at half that rate. 

Marketing Help for Maui

With Maui arrivals still down 23% vs. 2019, HTA and HVCB are rolling out a $6 million “Maui Emergency Marketing Campaign” to jumpstart demand. Kicking off June 2, the campaign includes $4M in national wholesaler pushes (Costco Travel, Expedia, Pleasant Holidays, etc.), targeted media and PR, and a “Maui Week” media blitz in 15 mainland markets. There's also a Special Offers Program aimed squarely at converting bookings, already live via HVCB’s leisure budget.

When I was overseeing marketing, I used 10:1 ROAS (Return on Ad Spend) as my goal for booking campaigns (as opposed to branding campaigns), which means this $6M spend should ideally deliver $60M in incremental revenue. That’s tough to measure precisely, but year-over-year trends should show if we’re moving the needle. HVCB excels at this kind of coordination, so there’s reason for cautious optimism. 

More on Maui: Passion, Policy, and a Whole Lot of Talking

I was hoping to give an update on Maui Council’s Bill 9, the one aimed at converting short-term rentals into long-term housing, but the public hearing dragged on, and now they’ve scheduled two more full days (June 18 and June 23) just to finish public testimony.

176 people signed up to speak, but only 52 got their turn. As the saying goes, opinions are like mouths—everyone has one. (Yes, I revised that for polite company.) My guess? It’s 172 versions of the same 10 arguments. If it were up to me, I’d have folks record their testimony, let AI sort them by theme/argument, and have a few of the most passionate voices from each side representing those arguments speak. Though I’ve been told that prioritizing efficiency over feelings might be… a bit cold-hearted.

Only 4% of homes are currently affordable to Maui residents. Bill 9 might bump that to 11%, but only if out-of-state buyers don’t get there first.

More to come after round two (and three) of testimony.

Convention Center Construction Delays? Shocking!

As we mentioned when this first hit, the Convention Center roof repairs were always likely to take longer than advertised. Now it’s being publicly forshadowed. With the news that HTA’s lead is out, and the Department of Accounting and General Services (DAGS) has stepped in, we are getting rumblings that a further delay is likely.

DAGS Comptroller Keith Regan summed it up with a not-so-subtle hedge: “We recognize the need to be aggressive... but I just wanted to caution that there may be a need to revisit the schedule.” Translation: we’ll cross that roof when it collapses. These sorts of projects generally tend to slip, but when you add government procurement processes and bureaucracy to the mix, it is a near guarantee. Who could have possibly seen this coming? It’s not like folks were waving red flags about it years ago (tongue firmly in cheek).

As reported in the Star-Advertiser, DAGS is already managing 400+ active projects, including Aloha Stadium and repairs at the State Capitol.

We flagged this back in Issue #4, and now it’s playing out: this isn’t just a construction delay—it’s a real threat to future group demand, island-wide compression, and the trust of planners we’ve spent years trying to win back.

Hotel Performance

Forecast: Meh

CBRE and STR/Tourism Economics have both trimmed their 2025 U.S. hotel forecasts—again. CBRE now pegs RevPAR growth at 1.3%, down from 2%. STR/Tourism Economics cites Q1 underperformance and macro uncertainty, revising 2025 projections downward across the board: demand (-0.6%), ADR (-0.3%), RevPAR (-0.8%), and GOPAR (down $3 thanks to rising costs and weaker demand).

PWC paints a similar picture with a continued demand bifurcation, macro-driven headwinds, and a fragile consumer landscape in 2025. Upscale and urban markets may hold their ground, but the middle and lower segments—and leisure-heavy destinations—will feel the squeeze. Strategic planning, especially around pricing and segmentation, will be key.

A key drag? Declining international leisure travel, fragile consumer confidence, and shortened booking windows. While mainland drive-to destinations may see modest gains, here in Hawaiʻi, we’ll need to work harder for ours.

At the NYU Lodging conference, where many Hotel CEO’s spoke, the mood was surprisingly calm, but the outlook still depends on close-in bookings, discount-driven transient demand, and a supply pipeline that won’t budge until 2027.

But none of that gets easier with headlines about tourists being turned away, talk of annexation, tariffs, travel bans, and now an expected 80% cut to Brand USA’s budget.

BTW- If you are interested in supporting the effort to protect BrandUSA funds, you can send a message to your Senators here.

The Hotel Geeks’ Nirvana

This week, I will be attending HITEC (Hospitality Industry Technology Exposition & Conference) and HSMAI’s Commercial Strategy Conference—a concurrent doubleheader for those of us who get oddly excited about things like AI-driven PMS systems and the future of direct bookings.

If you’re not familiar, HITEC is the hospitality tech event of the year, basically CES for hotel nerds. It’s where vendors, operators, and consultants converge to show off shiny new toys and speculate on what’s next (and occasionally to see the latest vaporware). HSMAI’s event adds a more strategic layer, bringing together sales, marketing, and revenue pros to talk shop, swap war stories, and try to future-proof their commercial teams.

I am not speaking this year but will be taking notes, and probably asking too many questions (I am “that” guy). So expect a recap in next month’s newsletter with the most useful, eyebrow-raising, or head-scratching takeaways. If there’s anything you want me to keep an eye out for, let me know.  And if you are attending, please say “hello.”

Google Is Rewriting Hotel Search. Are You Ready?

At Google’s big 2025 launch event, they introduced AI Mode—a new way people will plan trips. Instead of searching and clicking links, travelers will ask Google to find and book a hotel, and the AI will handle everything—no websites, no scrolling, no OTAs.

It’s not fully live yet, but pieces of it (Gemini, Deep Search, AI Overviews) are already here. Once it comes together, your hotel won’t be found unless Google’s AI can read and trust your content.

That means:

  • Clean, structured info

  • Real-time rates and availability

  • A site and booking path that’s AI-friendly

Direct bookings won’t disappear, but they’ll depend on whether you’re visible in this new AI-driven world.

The “10 blue links” are fading. If you’re not preparing now, you might already be behind. This is a fast-moving space, so it’s important to stay on top of what’s happening, and if you don’t have time, don’t worry, we’ll keep covering it here.

Anonymous Comments to the Editor

"What a fantastic newsletter! I want to join the Hui 🌴. As a hospitality professional with a passion for Hawai‘i, this is one newsletter that I’ll be counting down the days until the next issue. Keep them coming, Dan!"

“Thanks for the thoughtful coverage in the last issue. One thing I’ve been thinking about is, while there’s plenty of criticism aimed at HTA and state policies, the hotel industry also plays a role in shaping the tourism experience. We’ve all pushed for growth, and now we’re navigating the consequences. It might be time to have a more open conversation about how the industry can lead, not just react, in creating a more balanced future for Hawaiʻi tourism.”

Corrections Department (Mahalo, eagle eyes!)
Our eagle-eyed readers are both akamai and quick to call it like it is—and we appreciate it. A few things we need to set straight from the last issue:

  • We incorrectly stated that the TAT was increasing from 9.25% to 10%. In fact, it’s going from 10.25% to 11%.

  • We said Hilton Hawaiian Village was branded and managed by Marriott. Doh! That was leftover from a Marriott example. Of course, it’s branded and managed by Hilton. As one reader said, “I am sure Marriott wishes they managed and branded it.” 🙂

  • We also misattributed the ownership of Hyatt Place. It’s owned by Host, not Mirae Asset Global Investments. (Mirae owns the Hyatt Regency, not the Place, and who’s on first?)

Keep the fact-checks coming—seriously. You help us stay sharp (and have me kicking myself every issue ;-).

Nothing Good at 35,000 Feet

The first half of 2025 has been one of the busiest travel periods I can remember. According to TripIt, I logged 59,747 miles with a carbon footprint of 34 tCO₂—that can’t be good. (BTW, if you don’t use TripIt, I highly recommend it for organizing and tracking your travel; you simply email all your confirmations to it and it creates a single itinerary for you.)

After yet another round of lackluster inflight entertainment, I am giving up on video entertainment this issue and turning my attention to something more satisfying: FOOD.

Over the years, when friends and colleagues have visited Oʻahu, they’ve always asked for recommendations. So I created an email with the subject line “Dan’s List,” featuring my go-to things to do and eat (mostly eat). As the requests piled up, I eventually turned it into a hidden page on my website so I could just share the URL.

If you’re interested, you can check it out here. Just don’t share it with anyone who thinks Olive Garden should be on the list (if you are reading this, you know who you are ;-). And if you’ve got favorite restaurants on Oʻahu—or the neighbor islands—I’d love to hear about them. I’m always on the hunt for great grindz.

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

*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 technology, marketing, revenue management, operations, 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, and 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.