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 Capital). 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 two Romer’s on the books (Hell’s Kitchen, NYC, and Romer House Waikiki). Losing the 368-room Waikīkī property, feels like a hit to the new brand. It reminds me a bit about what happened at the first Marriott Edition brand that overcame a disastrous start when the Waikiki Edition famously changed management companies and brands 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.
