Waikiki Parc Hotel, the midpriced sister hotel of the uber-luxurious Halekulani, is slated to close in the fall of 2016 for a 16-month renovation designed to upgrade the guest experience and cut the number of rooms at the boutique hotel.
The renovations are expected to reduce the hotel’s room count to about 200 one-bedroom and two-bedroom units, down from the approximately 297 studio units it now has, said Clarence Izuo, senior vice president of Anbe, Aruga & Ishizu Architects, during a presentation to the Waikiki Neighborhood Board.
The project, scheduled for completion in early 2018, also will add a new eighth-floor pool and create an improved outdoor gathering area complete with a stage. A rooftop terrace, which will include a trellis and a lounge, also will be added. Enhanced landscaping and streetscaping near the designated crosswalk between Waikiki Parc and the Halekulani will round out the project.
The coming renovation is the most significant for the Waikiki Parc Hotel since Halekulani Corp. completed extensive renovations in 2006 on the property, which it built in 1987. Those earlier changes added Nobu Waikiki, the first Hawaii location for world-renowned celebrity chef Nobuyuki "Nobu" Matsuhisa’s popular chain restaurant. Earlier work also included a contemporary and artistic redesign of the hotel entryway, lobby, guest rooms, front desk and concierge station.
Halekulani Corp. did not return calls to the Honolulu Star-Advertiser to discuss the fate of employees or Nobu Waikiki’s status.
The Halekulani’s reinvestment in the Waikiki Parc Hotel is in sync with the continuing repositioning of Waikiki, which, over the last dozen or so years, has included more than $3 billion in improvements, including the creation of Waikiki Beach Walk, significant upgrades to the Royal Hawaiian Center and upmarketing of nearly every hotel chain of substance.
"The revitalization of Waikiki has increased the number of higher-end rooms available," said Rick Egged, president of the Waikiki Improvement Association. "It’s part of Hawaii’s strategic tourism plan. We have fewer rooms today than at our peak, so we need to attract higher-yielding tourists so that we can get the most out of every room that we can."
For example, Egged said that in 1997 only 23.4 percent of Waikiki hotel rooms were considered luxury products, and by 2012 that number had increased to more than 45 percent.
"Everybody has raised their game in Waikiki over the past six or seven years," said Joe Toy, president and CEO of Hospitality Advisors LLC. "There’s a lot of upside value to properties that have not yet undergone renovations during this latest cycle. Combining the strength of the Halekulani brand with the right renovations would allow the Waikiki Parc Hotel to be competitive with the high end of the market."
Waikiki Parc Hotel’s planned renovation fits into the next wave of Waikiki product development, which includes the International Market Place, the Ohana West, the Sheraton Princess Kaiulani and PACREP’s two condominium hotel towers along Kuhio, Egged said.
"All of these projects will increase visitor interest in Waikiki," he said.
Halekulani Corp. has not touted its latest renovations as a condominium conversion project. However, the scope of similar Waikiki projects has captured the attention of Unite Here Local 5, which is spearheading a city measure to prevent hotels from converting into condominiums without obtaining a special permit or notifying employees. Bill 16, which will be discussed at Honolulu Hale on Tuesday during a 9 a.m. hearing, is supported by members of the Aikea Movement, a grass-roots effort to boost Hawaii’s economy by preserving hotel jobs.
"Condotels employ less workers than full-service hotels," said Paola Rodelas, Unite Here Local 5 communications specialist. "In addition, it is estimated that the average (tax) lost when a hotel room is converted into a condo is over $3,300 per unit per year when a condo is not entered in the rental pool."
Halekulani Corp. has not revealed its plan for the 200 or so Waikiki Parc workers employed at the property. However, Toy said it’s likely that the company would want to bring them back or that they would fare well in the current job market.
"They have been trained to Halekulani’s high standards," he said. "I would think that would play out well with prospective employers."
