Last issue we called it out, many in the industry want to position Hawaiʻi as a luxury destination… but the product doesn’t always back it up. As we mentioned, only about 18% of the state’s hotel inventory actually falls into the luxury category.
Now, a couple of heavy hitters seem to be stepping up to (small kine) fill that gap. Larry Ellison, Oracle co-founder, 98% owner of Lānaʻi, newly minted media mogul and aspiring Marvel villain, is looking to expand Sensei Lānaʻi. The additions will include “several” luxury villas and spa facilities, clearly aimed at the ultra-high-end wellness traveler. Meanwhile, the Kobayashi Group is pushing a new 38-story luxury hotel and residential tower at Ala Moana designed for well-heeled guests. On paper, this is exactly what the market needs. In reality? We’re still talking about a handful of villas on Lānaʻi and a hotel being dropped into a mall parking lot.
Yes, Park Lane worked, I know… people love it. I still don’t quite get the appeal of “luxury living” in a mall, but clearly the market disagrees.
In a somewhat related note, a recent LinkedIn post by CoStar’s Jan Freitag showed that, among major U.S. markets, Oʻahu has the oldest hotel inventory, with roughly 80% being over 20 years old and less than 2% of new rooms under construction relative to that base. So any new or renovated inventory is a big deal.
Still no word on the Mandarin Oriental down the street from the proposed Kobayashi project. I put on my reporter’s cap and tried calling the number on the website… out of service. Not exactly a great sign. If anyone in the Hui has the real story, I’m all ears. But my bet, based on conversations with some folks in the know, is that this project is all but dead.
For now, being a true luxury destination still feels a bit aspirational.
