We’ve spent a lot of time lately deconstructing the “who’s on first” puzzle of Hawaiʻi hotel ownership, branding, and management. From trusts that own the dirt to brands that don’t actually run the building. But if you think hotels are complicated, step into the world of condotels and vacation rentals, where a single property can involve multiple layers. That complexity turned very real and very litigious after last year’s horrific grill explosion at The Whaler on Kāʻanapali Beach, which injured more than a dozen people.
The resulting lawsuit reads like a masterclass in impleading, a legal term for suing everyone tied to the property. Plaintiffs have filed negligence and liability claims against the AOAO, Aqua-Aston, Marriott Vacations Worldwide, HEI Hotels & Resorts, Destination Maui, Inc., along with equipment manufacturers and the gas company. The allegation is that the “resort” failed to implement basic safety protocols. But zoom out, and the broader issue is hard to ignore: who actually is the “Resort”?
When a guest books a stay at a “branded” vacation rental, they reasonably assume a single entity is responsible. In reality, responsibility is spread across a tangled web of ownership structures, management agreements, and vendors that only becomes visible after something goes wrong.
Reality Check: Most condo properties with significant vacation rental activity involve multiple parties, since individual owners usually control how their units are rented. Those roles are often blurred, but here’s how they typically break down.
- Association of Apartment Owners (AOAO): The condo owners’ association that controls common areas, building systems, and shared operations.
- Front Desk / Common Area Operator: A company hired by the AOAO to operate the front desk, typically a management company that also markets and may brand the property. These operators often run their own on-site rental pool, and in some cases even own the front desk and some common areas outright. (In this case, HEI Hotels and Resorts)
- Branded Management Companies: Brand-affiliated operators that manage and market multiple units in a property for unit owners. (In this case, AquaAston and Marriott Vacations are examples).
- Unbranded Management Companies: Independent companies that manage and rent units on behalf of owners without a brand. (Think local real estate companies and small management companies).
- Self-Managed Units: Owners who operate and market their units directly, typically via Airbnb or VRBO.
I am exhausted just writing that, and that’s the simple version. The real one requires a whiteboard, a few lawyers, and a stiff drink
