Opinion Articles

Checking the Changes to Hawaiian Luxury with the Halekulani

For those who are unfamiliar, the Halekulani is (pardon the alliteration) a hallmark of Hawaiian hospitality, with the property acting as the keystone for the densely populated beach tourism area of Waikiki in Honolulu. At 453 rooms and suites, the luxury hotel has a time-honored history, first established in 1917 and now comprising five buildings and three signature restaurants, all with an unparalleled onsite experience. Further to this article, the property closed completely for an 18-month renovation at the outset of the pandemic in 2020.

Creating the Entertainment Capital within the Entertainment Capital of the World

Las Vegas is a city that lives on reinvention to keep drawing ever-larger crowds to this oasis in the desert that, for full transparency, wouldn’t even exist if it weren’t for the entertainment industry. While the world’s entertainment capital started out with gaming, shows and conventions, in recent decades it has also become a culinary mecca and now a world-class sports destination.

Extended-Stay Hotels Continue to Gain in Popularity

The pandemic and hybrid work arrangements have generated strong demand for longer hotel stays, increasing the popularity of cost-effective extended-stay hotels and making them one of the fastest growing segments in hospitality. With higher margins and lower development costs than full-service hotels, extended-stay properties have the potential to generate higher returns on investment. As a result, banks are more likely to provide funding for what are perceived to be lower-volatility, higher-return hotels, particularly those associated with well-established brand families. We expect capital to continue flowing into this segment as long as outsized returns exist.