The acquisition of a five-star, 81-room luxury beach resort in the Maldives by Hawaii-headquartered Outrigger Hospitality Group is part of an ongoing global
expansion strategy that includes Hawaii, according to President and CEO Jeff Wagoner.
“We are a global company but our roots are in Hawaii,” he said Monday, “and we want to continue to expand and renovate properties and grow our footprint here.”
Wagoner noted that Outrigger has, within the past eight months, acquired the Outrigger Kona Resort and three resorts in Thailand, plus its latest addition, renamed the Outrigger Maldives Maafushivaru Resort, which occupies a private island in the South Ari Atoll region of the Republic of Maldives, an archipelago in the Indian Ocean about
450 miles southwest of Sri Lanka and India.
The company did not disclose the cost of the acquisition, which was announced Thursday.
He said having Outrigger luxury beach resorts in the Maldives, where the group
is looking at other possible acquisitions, would not dilute the visitor pool for its
Hawaii properties because visitor markets for the far-flung island chains are historically separate.
“A lot of these resort destinations have (visitors of) different geography,” Wagoner said. “The Maldives get a significant amount of travel that comes out of China, India and Europe, just based on its location in the world and because it (attracts) a different customer.”
In contrast, he said, 60% of travel to Hawaii comes from the U.S. mainland, mainly from the West Coast.
“Certainly any global major destination is competition for Hawaii,” said Keith Vieira, principal of KV &Associates, a hospitality consulting firm.
However, he said
Maldives visitors “are much more Europe-based,” and Outrigger’s global expansion might help market Hawaii to a broader audience.
“They’re growing their brand,” Vieira said of Outrigger Hospitality Group, adding, “Outrigger is associated with Hawaii and will be spreading the Hawaii brand around the world.”
Wagoner said the company has had properties
internationally “for many years now, including two properties in Fiji and a property in Mauritius.”
Now, he said, Outrigger is looking at properties in California and on the west coast of Mexico, as well as in the Pacific and Indian oceans, and other destinations in Hawaii as well.
A newly completed Hawaiian cultural center at the Outrigger Reef Resort in Waikiki, and plans to renovate the Outrigger East and Outrigger Kona properties, illustrate the company’s commitment to investing “$200-plus-million across many of our properties in Hawaii that’s probably going to end up a lot more,” Wagoner said.
At the same time, Outrigger’s Fiji resorts are popular destinations for Hawaii residents, including surfers and their companions, he said, and also see “a lot of travelers from Australia and New Zealand, who come to
Hawaii, as well.”
While not as radical as
Fiji’s famed Cloudbreak and other massive breaks, the many point-break waves of the Maldives are also celebrated in surf publications.
“The Maldives are great for high-end spenders, so that’s good for Outrigger,” Vieira said. “And the stronger the Outrigger brand is, the better off they’ll be in Hawaii.”
Looking ahead, “we’re very bullish on Hawaii,” Wagoner said.