The Outrigger Reef Waikiki Beach Resort will unveil its $80 million renovation today after a nearly five-year wait that included a change of ownership at the flagship property.
Outrigger Hospitality Group, which manages 21 properties in Hawaii, said the transformation includes an expanded Kani Ka Pila Grille, including a new stage for live Hawaiian music; completely remodeled rooms and suites with Hawaiian-themed artwork; a doubling in size of the Hawaiian cultural center; new retail storefronts; and a new oceanfront restaurant.
The resort, which plans to reopen in late April after being closed since March due to COVID-19, also is refurbishing its five-story, oceanfront Diamond Head Tower and converting offices into 23 new deluxe rooms and suites. One of the suites will be 1,400 square feet with two bedrooms, two bathrooms, a living area and a large lanai facing the ocean and Diamond Head.
The Diamond Head Tower renovation is scheduled for completion in August and will increase the number of rooms at the resort to 658. The resort’s other two structures, the 18-story Pacific Tower and 10-story Ocean Tower, have 436 and 199 rooms, respectively. Approximately half of the refreshed rooms in the three towers will have a full or partial ocean view.
“This is a complete transformation of this property,” Outrigger Hospitality Group President and CEO Jeff Wagoner said in a phone interview. “This property hasn’t been renovated for quite some time. Even when you enter the property, the porte-cochere and canoe hale have been completely changed, with new lighting and new colors. That’s exciting just as an entry to the property. … We’re also doing some structural work so that when you enter the property, you’ll have a view all the way down to the ocean. This is an oceanfront resort, and you should be able to experience that all the way throughout the property.”
The Outrigger Reef’s transformation, under the direction of architecture firm Hart Howerton, is part of Outrigger Hospitality Group’s $200 million Waikiki reinvestment plan under new ownership. This Outrigger Reef renovation is an entirely new plan from what had been proposed five years ago under different ownership.
Outrigger shared plans in June 2016 for a proposed $100 million renovation of the Outrigger Reef resort. But in November 2016 Outrigger — which had been owned and operated by the Kelley family for 69 years — announced it had reached an agreement to be sold for an undisclosed price to Denver- based KSL Capital Partners LLC. The transaction included all 37 of Outrigger’s multibranded portfolio of hotels, condominiums and vacation resort properties. That deal was finalized the following month.
Wagoner, who took over at the helm in April 2018, said the $100 million renovation “was really the prior ownership’s thoughts on what it was going to do.”
“Once KSL acquired the property, it went through and evaluated all the needs of the property and determined that $80 million was adequate to touch every inch of the property,” Wagoner said.
The Outrigger Reef began its initial renovations in January 2020 and expedited the makeover after suspending guest operations in March due to COVID-19.
“You can imagine doing construction and having the ability to have full rein of the property rather than sectioning off certain areas of the property,” he said. “It certainly helps the renovation go along smoothly, and you don’t have guest disruption. It made sense to close down.”
This makeover marks the first major renovation for the resort since 2009. The Outrigger Reef was first completed in 1955.
Wagoner said Outrigger’s investment illustrates its commitment to this market by showcasing Hawaiian culture through the resort’s museum-quality art, live Hawaiian music and authentic cultural programming with a focus on the legacy of voyaging and caring for the ocean.
“This property has always been about Hawaii’s rich heritage and the legacy of voyaging,” Wagoner said. “We always try to weave things together, whether through art, guest experiences or having a cultural director at the property.
“We’ve doubled the size of the cultural center with a very strong nod to (Native Hawaiian and Hokule‘a navigator) Nainoa Thompson and the Polynesian Voyaging Society. All the work we’ve done over time has been educating customers about the history of Hawaii and voyaging in the islands. The artwork in our guestrooms is curated particularly to the history of Hawaii, as well. And in the lobby we’ll have a piece of art (a 30-foot mural of a double-hulled canoe painted by PVS co-founder and Hawaiian historian Herb Kane) that will go the entire length of the front desk.”
Among other new changes are:
>> A new check-in area with basalt front-desk stations and a plush living room.
>> All-new furniture, fixtures and equipment at the pool and spa.
>> Upgraded meeting room and event spaces, including a new outdoor lounge and multifunction space.
>> Installation of state-of-the-art technology — everything from the in-room TV with Sonifi Chromecast to the sound system throughout the property.
>> A new fitness center with best-in-class equipment, spa treatment rooms and Coral Kids Club.
>> Enhancements to the oceanfront Voyager 47 Club Lounge.
>> Environmental considerations such as water stations on each floor to encourage the use of reusable water bottles.
>> Hosting training initiatives to improve service for guests.
The resort will have four eating options. At the front, Kani Ka Pila Grille remains in the same location, but it is undergoing a full refresh, with a new stage being built for maximum artist visibility and a new layout that will nearly double the outdoor seating. Kani Ka Pila Grille also will service the resort with breakfast, lunch, dinner and room service.
Starbucks will remain at the front of the resort with an enhanced interior design.
At the back of the resort, the Reef Bar and Market Grill, which replaced the Shore Bird Restaurant & Beach Bar, will give way to another restaurant that is now in the planning stages.
And a new marketplace will provide grab-and-go options.
Wagoner said he’s reluctant to project what level of occupancy the resort will reach this year because of uncertainty involving international arrivals. He said the Outrigger Reef gets about 60% of its business from the mainland, 30% from Japan and 10% from other countries.
“The general feeling in the industry is that occupancy can get to 60% by the end of the year, but it would need to be a strong ramp-up and it also would depend on what travel restrictions are lifted,” he said.
When construction began, the Outrigger Reef had about 150 employees. The resort anticipates that after its reopening and subsequent ramping up to traditional occupancy, the workforce will be at a similar number.
Wagoner said the renovated Outrigger Reef is one of several properties that are transforming this corridor of Waikiki. He cited the Halekulani, which is now under renovation; the Halepuna Waikiki by Halekulani, which finished its renovation in October 2019; and the newly built Ritz-Carlton Residences. The Outrigger Hospitality Group already has finished a $35 million modernization at the Waikiki Beachcomber by Outrigger and has upcoming projects that include the Waikiki Malia by Outrigger and Ohana Waikiki East by Outrigger.
“We are extremely excited about being part of the (Outrigger Hospitality Group’s Waikiki) $200 million renovation plan,” Wagoner said. “This is an important property for Outrigger Hospitality Group, and that entire corridor of Waikiki is upgrading their properties.”
RESORT FACE-LIFT
Some key features of the renovated Outrigger Reef Waikiki Beach Resort:
>> Cost: $80 million
>> Reopening date: Late April
>> Diamond Head Tower: 23 new deluxe rooms and suites
>> Food: Expanded Kani Ka Pila Grille, Starbucks, grab- and-go marketplace, new restaurant
>> Rooms: Completely remodeled
