Saturday BriefingPage 1

June 22, 2013 A MESSAGE FROM RICHARD R. KELLEY TO OUR OUTRIGGER ‘OHANA

®

Fewer Economy Hotel Rooms >> 10

Middle-class American leisure travelers are the largest segment of the market and they have always served us well.

“ “ Fewer Economy

Hotel Rooms Mean Waikīkī Visitor Industry

Is ChangingBy Dr. Chuck Kelley

There are many well-known and oft-cited reasons why things are so expensive in Hawai‘i, and we all bemoan them every day because they make it hard for so many local residents to make ends meet. In the hotel business, the high cost of doing business ultimately translates into the fact that upscale hotels, with higher room rates, simply make better business sense – i.e., are more profitable – than economy hotels. In fact, economy hotels are often no longer financially feasible at all! This has forced many economy and budget hotels to change strategy. Some have been converted to condominiums; others have invested millions of dollars and moved into the higher-end market. Either way, there are now fewer economy hotels in Waikīkī.

In our own portfolio, a few years back we had 15 OHANA Hotels specifically offering clean, simple, fun and affordable rooms. Today we have only three. I am proud of what we have accomplished and it has been a great strategy for us, but what about the long-term strategy for the destination as a whole? What is the impact of Waikīkī turning into a more upscale destination?

Mel Hits It Out of the Park >> 10

Mel Kaneshige

Mel Hits It Out of the Park!By David Carey

A former baseball player in high school and college and lifelong fan of the sport, Mel Kaneshige is rounding home plate and retiring after 18 years of “playing ball” at Outrigger®

. Mel’s career can best be described as “hitting it out of the park!” Before Mel joined Outrigger in 1995, he was a partner in the law firm of Chun, Kerr, Dodd & Kaneshige for 20 years. The practice focused on real estate development, acquisition, financing, management and disposition. His years and experience there lent perfectly to his role as executive vice president real estate and development for Outrigger Enterprises Group. Mel has been a key player in the growth and repositioning of the Outrigger real estate portfolio that has grown from its Hawai‘i roots to the Asia-Pacific region and now includes 45 properties with approximately 11,000 rooms currently under management or development. Mel earned “most valuable player” for his leadership in the redevelopment and repositioning of signature Outrigger properties throughout Hawai‘i, including the $1.75 billion Waikiki Beach Walk® development that was a catalyst to the overall revitalization of Waikīkī. His dedicated 10-year effort to amend the City’s zoning code enabled the largest development in Waikīkī’s history – one that celebrates the heritage and culture of Hawai‘i today and led the way for over $3 billion in redevelopment projects in Waikīkī. Mel shared, “Easily the most significant project in my 18-plus years with Outrigger was the Waikiki Beach Walk project because of its impact on both Waikīkī as well as our company. It took ten years from the time we started to the time we broke ground for Waikiki Beach Walk, through the Asian financial crisis, the Russian ruble crisis, the tech stock crash, the second Gulf War, SARs and more. It took a long time, but for Outrigger this work was vital to its long-term future as well as to the future of Waikīkī.”

Saturday BriefingPage 2

Saturday Briefing is published by and for

employees of Outrigger Enterprises Group (OEG)

Editor-In-Chief: Richard Kelley

Supervising Editor: Pila Hanson

Senior Editor: Kathy Foley

Proofing Assistant: Char Luning

Contributing Writers: Employees of OEG

Visit us online at:

www.saturdaybriefing.outrigger.com

Submissions to Kathy Foley

at kathysb@outrigger.com,

via interoffice mail to OEH/HR,

or by phone at (808) 921-6957.

© 2013 Outrigger Hotels Hawaii An Equal Opportunity Employer

April 28, 2013 9 pounds 2 ounces

21 inches

welcomed with love by mommy Grace Nakamura

and daddy Shawn Takayama

Cassie Midori Emma Takayama

Cassie Midori Emma Takayama

Cassie Midori Emma Takayama

Cassie Midori Emma Takayama

Happy Birthday!July 3: Vivian Z. Chen, Cari Ann Coates, Carmelita David, Myrna I. Elamparo, Gregg Enright, Salome M. Manalo, Saiasi Naivaqa, Carissa Rose, Mere Thaggard, Georgia J. Tsukazaki and Lian Fang Xian.

July 4: Rt. Kinijoji Bilowalu, Christopher A. Gampon, Asheley Maria W. Kahahane, Ratumara Kubunavanua, Yu Mei Liu, Chissanucha Pechkeng, Suttipong Potijawngjant, Adi Purwono and Onisivoro Vuiyasawa.

July 5: Inocencio L. Agliam, Yanling Huang, Asena Laqere, Eric H. Liu, Suzette K. Neula, Ramon Cedillo Ramirez, Supansa Ratchapon and Jaedsada Thonomsak.

July 6: Kathery Aiken, Chandi M.A. Dawson-Dunhour, Dickson Santos and Sakrapi Wandee.

July 7: Laisiasa Bosoka, Miaoxia Chen, Christopher DeClosey, Marylou Dela-Cruz, Jomjai Jitwait, Caroleta D. Mata, Arlene Palugod, Allan Garvida Sagucio and Erami Waqa.

July 8: Mohammed Buksh, Sahim Buksh, Ruengsak Chattongkum, Zhangming Chen, Tinorua L. Geronimo, Eugenio A. Jadraque Sr., Daniel Jones, Michael Juco, Erami Laqai, Li E. Lei, Trent Murray, Sampakita Ranu, Diana Y.C.L. To and Lauren S. Yamamoto.

July 9: Wiwat Boonruang, Watcharapong Channarong, Yi Husan Chen, James W. Kahele, Wan Ruo Kwock, Vika Naibuka, Chantima Pontanot, Chantel Praest and Cornelia U. Satomba.

Employment Opportunities

If you are interested in a position listed below and meet the qualifications, you may apply online. Please go to Outrigger.com, click on ABOUT OUTRIGGER, then EMPLOYMENT. We only accept

online applications for the open-listed positions from internal candidates. If you have any

questions, please call Chad Teramae at (808) 921-6989. Application deadline for the following positions is June 28, 2013.

Guest Services Representative (Full-Time)

A minimum of one year customer service and cashiering experience, preferably in the hospitality industry, required. Basic computer skills and ability to type 30 wpm required. Must be a team player with excellent communication skills and ability to work any day and shift.

Outrigger Aina Nalu

Guest Services Representative (On-Call)

A minimum of at least one year customer service and cashiering experience, preferably in the hospitality industry, required. Excellent computer skills and ability to type 30 wpm required. Must be a team player with excellent communication skills and ability to work any day and shift.

Maintenance (On-Call)

Must have three years experience with interior and exterior maintenance including demonstrated ability to install, repair, inspect, service and maintain FF&E facilities. Must also have experience with heating, cooling, plumbing, ventilation, water, electrical and mechanical systems, ability to lift and move items weighing 75 lbs and to work any day and shift.

Saturday BriefingPage 3

Outrigger® Receives “International” RecognitionBy Kathy Foley

Friday, June 14, the Outrigger Toastmasters Club received a special corporate recognition award from Toastmasters International.

The recognition was to show Toastmasters International’s appreciation and recognition of Outrigger’s support of Toastmasters in general and the Outrigger Toastmasters Club in particular.

Dr. Chuck Kelley, an active Toastmasters member, received the award on behalf of the Club from Past International Director Kevin Doyle; District Governor, Richard Hernandez; and Area Governor Eddie Joseph.

Area Governor Eddie Joseph participated in a couple of our meetings and commented, “Meetings are professional, lively, informative and friendly; evaluations are thoughtful with suggestions for improvement.”

The Outrigger Toastmasters Club is also celebrating its 10-year anniversary having been chartered in June 2003. Club members are grateful to Outrigger Hotels for its sponsorship over the years.

VP of Membership Kathy Oyadomari shared, “We are so fortunate to have so many dedicated employees who volunteer their time to ensure that our Toastmasters Club is successful and continues to help so many develop personally and professionally. It’s been a team effort to keep our club active and I look

Toastmasters District Governor Richard Hernandez, Thaila Kaikala, Kathy Foley, Jose Solorio, Kathy

Oyadomari, Heather Balao-Doeringer, Laurie Hirata, International Director Kevin Doyle, David Reed,

Nancy Brunner, Kathy Hansberry, Dr. Chuck Kelley, Area Governor Eddie Joseph and Milton Lafitaga

forward to sharing the benefits that I have gained from being a member.”

VP of Education Laurie Hirata said, “As one of the founders of this club, it gives me such pleasure to see members begin their icebreakers with quivering voices, sweaty palms and much nervousness to being able to speak confidently at public events and to achieve their goals. That’s why I’m committed to this club and to the success of our members!”

New member and newly elected Treasurer, David Reed said, “I am happy I overcame the fear and joined

Toastmasters. The veteran members are very supportive and are a great example for us new members. I already feel benefits in small ways that I can use as I work to become a better speaker. I think being around you all is rubbing off!”

If you are interested in learning more about the Outrigger Toastmasters Club, please sit in on one of our informal meetings! We meet the 2nd and 4th Wednesday of each month at noon in the 6th Floor Lunchroom at the OHANA Waikiki East. If you have any questions, please feel free to email me at kathysb@outrigger.com.

Outrigger® Maui Eldorado(SM) Ka‘anapali

“As an aspiring (aka) amateur condo reviewer, I desperately sought to look for negative aspects of the Eldorado establishment. Sorry to say I couldn’t find any muck I could throw. All I can say is superlatives all around. 10 out of 10 all around. I shall be back to find faults.”

Madhvilata Joshi

Harlow, Essex, UK

Outrigger Napili Shores“We rented property at Napili Shores Resort on Maui for six enjoyable weeks and wanted to make a few comments. We have rented at Napili Shores for many years but had not been back for probably six years

and wanted to express our pleasure at finding two of your employees still working, namely Bobby [Casco] and Paula [Kahahane]. They are both such valued employees, greet guests so warmly, explain where everything is located, have the patience of a saint and just make you feel welcome and your experience at Napili Shores one where you just want to return. Also to our delight, the grounds have never looked better – well maintained and looking great… Again, we want to thank you for a very enjoyable stay at Napili Shores and look forward to coming back.”

Gerald & Gayle Lindstrom

Huntley, IL

Moments of AlohaMoments of AlohaMoments of AlohaMoments of Aloha

Saturday BriefingPage 4

Outrigger Participates in Sunset Magazine’s Celebration Weekend

By Lois Shore

As part of our marketing partnership with Sunset Magazine, Alani Liu and I attended the Sunset Celebration Weekend in Menlo Park, California, June 1-2. This annual weekend event on the expansive grounds of the publication was attended by approximately 21,000 people from primarily California, but also other West Coast states like Oregon and Washington. People describe the weekend as the pages of Sunset coming to life, and that’s exactly what happens with exhibits showcasing the latest in home design, construction and building materials; local wine and beer tasting booths; cooking demonstrations; gardening and travel exhibits - all focused on the Western lifestyle.

Outrigger Hotels and Resorts coordinated the Hawai‘i section along with the Hawai‘i Visitors and Convention Bureau Island Chapters of O‘ahu, Maui, Kaua‘i and Hawai‘i Island and Hawaiian Airlines. Working collectively, we sponsored a contest for four trips for two people to Hawai‘i – one per island – including air tickets on Hawaiian Airlines, a stay at one of our condo properties and activities sourced by the Island Chapters. Almost 2,500 people entered the contest; many of them giving us their names to add to our consumer email list.

Alani and I spoke with many Outrigger fans - some had recently returned from a stay at an Outrigger property; some were going to be staying at one of properties; and others asked us for advice on which of our properties to book. The booths were so crowded with people that at one point, George and Jo Estill of Estill Travel in Los Altos, long-time travel agent friends of just about everyone in Hawai‘i - jumped behind the tables and started answering questions and giving advice on Hawai‘i.

All in all, it was a great success for Hawai‘i and Outrigger.

Special thanks for helping to create the materials and coordinating the different elements of the event go to Carolyn Murren, Kevin Wong, Lisa Tojo, Gay Shinbara, Teri Orton and of course, Alani Liu.

Sunset Headquarters building in Menlo Park, California

Alani Liu and Lois Shore in the booth before the show opened on the first day

The Hawai‘i booths were busy continuously Saturday and Sunday!

The main food, wine and beer aisle at lunchtime

Saturday BriefingPage 5

Outrigger Surfers Paradise Balloon Convention Goes Off With a Bang!

By Gavan Conway

One of the balloon creations in the foyer

of Outrigger Surfers Paradise

Mike Hughes found a new friendJared Lewis, in disguise, tried out the balloon bike

Outrigger Surfers Paradise hosted the Australasian Balloon Convention in May that “went off with a BANG!” Balloon twisters from around the country gathered to showcase their knowledge and to discuss the latest trends of the inflatable art.

The convention held workshops for all skill levels – from novice organizer to balloon party hire professional.

Outside, the Boulevard Conference rooms saw a trade display set up in the pre-function space with various party specialist operators and suppliers. The hotel was transformed

into a helium-filled museum of balloon designs including balloon vehicles, 6-metre high flower displays and plenty of characters!

Fun was had by all, including the staff who were granted the opportunity to take some of the creations home, which was a sight in itself!

Outrigger Laguna Phuket Beach Resort Launches Beach Cleaning Day

By Jim Heather

On 7 June 2013 hosts from Outrigger Laguna Phuket Beach Resort carried out a beach cleaning exercise at the hotel’s beachfront and Bangtao Beach as part of its weekly exercise. Representatives from each department will take

part in this beach cleanup every Friday (Beach Cleanup Day). The beach cleanup stimulated hosts for environmental awareness as part of Outrigger Laguna Phuket Beach Resort’s Corporate Social Responsibility initiative.

Beach cleaning exercise fronting the Outrigger Laguna Phuket Beach Resort

Saturday BriefingPage 6

Outrigger Hospitality Shines on Maui for Our Travel Agent Specialists

By Gay Shinbara

Ellie Agustin, Teri Orton, Karen Koba and I had the pleasure of escorting 13 very special Outrigger Hospitality Specialist travel agents from June 5-9 on a FAM (familiarization) trip to Maui. The goal was to showcase our Maui condos and give the general managers the opportunity to speak with the agents directly about what the agents liked (or didn’t) about our properties. Another goal was to have agents directly sample the Outrigger spirit of hospitality, so they can speak with confidence to their clients about it.

To qualify for the trip, travel agents had to be certified Outrigger Hospitality Specialists who had reported a minimum of five bookings in their online Specialist account in the previous six months. Most of the agents on the trip had reported dozens if not hundreds of bookings. They came from Australia, California, Oregon, Washington, Illinois, Wisconsin, Texas, O‘ahu as well as from Surrey, Kelowna and Ottawa in Canada.

We spent the first evening at the Outrigger Maui Eldorado where Bill Rees and team hosted the agents to a site inspection of the property followed by a welcome dinner prepared at the beach cabana.

The next morning we headed to the Outrigger Palms at Wailea where Dawn Ribucan hosted another wonderful site inspection tour.

Then it was on to Lahaina to see Outrigger Aina Nalu. Most of the agents had not seen the property since it was renovated and were very impressed. That evening we were hosted by the Maui Visitors Bureau at the Feast at Lele. The agents loved it!

The next day we did sites of Outrigger Royal Kahana, Outrigger Napili Shores and the Kapalua Villas Maui where we stayed the last two nights. As a surprise treat, we gave agents tickets to the Kapalua Wine & Food Festival!

On Saturday at the General Managers’ Luncheon, agents furnished excellent feedback about what they liked and what they thought needed improvement. The trip was topped off with a catered dinner at the beautiful Kapalua Cliff House with special guest speaker Clifford Nae‘ole, cultural adviser at the Ritz Carlton Kapalua, for a beautiful close to our Maui FAM!

The ratings on the post trip survey showed the agents were very impressed with the Island of Maui in general, with our properties and our commitment to island hospitality featuring our fabulous staff! All agents said they will sell more Outrigger properties now that they’ve seen the properties for themselves. Here are a few comments from the post-trip surveys and emails:

What a fantastic FAM trip in Maui, we really

did get to experience such wonderful hospitality and I can’t thank Gay, Ellie, Teri and Karen enough for your organization and careful planning to ensure the schedule was just right… We will, no doubt, be putting our new found knowledge and confidence to good use very shortly.

- Melissa Harvey, Travel Managers Australia

A beeg MAHALO to The Outrigger Team for a very enjoyable FAM! Outrigger always scores a Slam Dunk on your FAMs! Maika’i! Learned so much more about all of these wonderful properties which makes our lives so much easier…Appreciate property staff taking their valuable time for sight inspections and answering all of our questions.

-Kalei Javellana, Hawaii Aloha Travel, Hawai‘i

What a fabulous trip! Thanks to Gay, Teri, Karen and Ellie for your hard work in putting such a great itinerary together – it was a pleasure meeting and getting to know each of you. I learned so much about Outrigger’s Maui properties, yet never felt like it was ‘information overload’ – the daily schedule was just perfect. Thanks also to each property for your gracious hospitality and for the opportunity to experience your property – there is no better way to recommend and sell a property than to have experienced it firsthand.

- Laura Walker, Hawaiian Travel, Texas

Everyone did such a superb job that I just wanted to express a big Mahalo Nui Loa to the GMs and the staff of the Outrigger® Maui Eldorado Kaanapali

SM

, Outrigger Palms at Wailea, Outrigger Aina Nalu, Outrigger Napili Shores, Outrigger Royal Kahana and The Kapalua Villas Maui. Thanks to Chris Kai‘aokamalie and Roxanne Murayama of the Maui Visitors Bureau, the Kapalua Cliff House, Clifford Nae‘ole of the Ritz Carlton Kapalua, Ellie Agustin, Teri Orton and Karen Koba for assisting us.

Outrigger Hospitality Specialist agents enjoying the Feast at Lele on our Maui FAM

Saturday BriefingPage 7

A Celebration of ServiceBy Debbie Murakami

The Hol iday Inn ® Waikiki Beachcomber Resort (OBC) kicked off their annual IHG Celebrate Service Week June 10 to recognize its employees for all the great work they do every day. As fate would have it, this weeklong, global event for all IHG properties complements our own Ke ‘Ano Wa‘a Paddle 6 – Celebrating Our Successful Journey experience.

Monday was proclaimed Purple & Green Day, complete with purple and green doughnuts. Employees and guests were invited to dress in the Holiday Inn Resort’s signature colors for a fun photo op in the hotel lobby. Wednesday’s Pizza/Karaoke Day was a definite crowd pleaser with Round Table pizzas and karaoke in the lobby conference room. After some beautiful love songs from the Maintenance Department’s Milton Kami and Rey Valencia, the Housekeeping Department’s Lyndon Montefalcon and other talented OBC staff, the entire room broke out into a rousing performance of Village People’s YMCA. Thursday’s Sports Day brought out the true sports fan in everyone. Employees and guests were invited to don their favorite team’s jersey or T-shirt and meet in the lobby for another photo op. To culminate the week’s activities, OBC hosted a Sweet Endings III Carnival. Employees competed in darts, mini-golf, beanbag toss, horseshoes and baseball toss to win healthy and hearty snacks to support Outrigger’s “LivingWell” and eating right effort. To cool off after the competition, employees enjoyed Samurai ice cream in flavors like strawberry/vanilla, chocolate/haupia and orange swirl.

Mahalo to all who participated in this fun-filled week. To see more pictures, “Like” us on Facebook/waikikibeachcomberresort or follow us on Twitter @beachcomberHI and Instagram @waikikibeachcomber. You may also read GM Dean Nakasone’s heartfelt FB message to the staff which was also printed on our Sweet Endings III Carnival goodie bags!

IHG Celebrate Service Week Kickoff Event

Sports Day

Pizza/Karaoke Day

Saturday BriefingPage 8

Outrigger Laguna Phuket Beach Resort Recognizes Hosts of the Quarter

By Jim Heather

On 5 June 2013, the Outrigger Laguna Phuket Beach Resort organized their second team meeting to recognize Hosts of the Quarter for the 2nd Quarter.

The meeting began with a Product Knowledge Challenge. The objective of this activity is to recognize the importance of product knowledge and build hosts’ confidence

The competition was fierce! The winning team of the Product Knowledge Challenge

in providing correct information to guests when needed. Eight teams from eight departments competed against each other in this quiz show. In the final battle round, the Sports and Recreation Department triumphed over the Human Resources Department.

After the Product Knowledge Challenge, it was time to honor and recognize hosts who have demonstrated outstanding service for the 2nd Quarter in various areas such as guest service, efficiency, quality of work and teamwork. General Manager Christoph Berger, Resort Manager Jim Heather and department heads extended their congratulations and offered words of praise to all of the distinguished honorees and nominees. Congratulations to:

Front of the House Honoree

Khun Santisuk Jaroenkeart • Restaurant Supervisor

Khun Santisuk is always friendly and polite to guests and colleagues. He has a great attitude with much of his work about happiness. We always see a lovely smile on his face whether on or off duty. As a restaurant supervisor at Locavore, Khun Santisuk is also a good team player; everyone on his team knows they can count on him.

Heart of the House Honoree

Khun Waranya Luang-Apicharttakul • Culinary Secretary

Khun Waranya joined us as a culinary secretary in January. She works each day with a smile and positive attitude. Additionally, she is always helpful and never says “no” when someone asks for help. Not only does she care about her colleagues, she also supports other departments whenever needed. Her dedication and caring is inspiring.

Congratulations also to the following Hosts of the Quarter nominees recognized for their outstanding performance during the 2nd Quarter of 2013: Pongsak Aiemchai, Wayupha Eungcharoen, Kannaya Khwanjantra, Anuchit Nuntakijwiboon, Nattawat Onmak, Supachai Petcharat, Wicharn Phoomphiphat, Nuanchan Sangchuang, Patchara Suksakda, Wassana Suwansang, Poramate Tongkhaw, Rassamee Totip and Ongart Yordthong.

Saturday BriefingPage 9

Miss Hawaii 2013 Has Outrigger Connection!By Kathy Foley

Kay and Myron with Crystal

on her first official day on the job

Congratulations to Revenue and Reservations Coordinator Kay Lee whose daughter Crystal (22) was crowned Miss Hawaii 2013 June 8 at the Hawai‘i Convention Center. Crystal was competing as Miss Chinatown Hawaii and beat out 16 other contestants in the 67th annual scholarship pageant. It was a four-year dream come true having run for Miss Hawaii in 2009. Not only did Crystal win this long sought-after title, she did so impressively winning the golf tournament scholarship and swimsuit and talent competitions and voted Most Photogenic! Contestants were scored on appearance, talent, a private interview held earlier in the week and their ability to think on their feet in answering a question onstage.

A former Rainbow Warrior dancer, Crystal’s talent was contemporary dance.

Her platform during her year of service is educating the public on giving “the gift of life” and the importance of blood donation.

Crystal expressed gratitude for her family and friends who have been her support and will go on to compete in the Miss America Pageant in Atlantic City Sept. 15.

Congratulations, Kay; we’ll be rooting for you, Crystal!

Kay Lee (2nd from right) and her ‘ohana: son Bryan, husband Myron,

mother-in-law Oi Ping Lee, daughter Crystal and son Bruce

Outrigger Fiji Opens Sophisticated Pool VenueBy Talei Tora

The Outrigger on the Lagoon - Fiji (FOR) recently introduced a pool and bistro for adults only (i.e., kids-free) – Vahavu, which means “to relax” or “chill out” in the local Nadroga Fijian dialect and is expected to entice a different segment of tourists who seek a quieter, relaxed environment to enjoy their holiday. The idea is a direct result of feedback from guests and couples in particular, who are seeking a more “chilled-out, adults-only” pool alternative at the resort.

The $2.2 million project began September 2012 and features a 20-meter lap pool, a 35-meter lagoon pool and a swim-up bar. The venue also features a banquets centre that can cater up to 100 guests. The bistro will offer a more upmarket bistro menu with shared tapa platters for the more astute clientele. The bistro is set in an outdoor-type dining facility featuring full poolside service and a lounge area.

Saturday BriefingPage 10

Fewer Economy Hotel Rooms << From 1

Right now we are all delighted to see the Waikīkī visitor industry doing well. Market demand for a Hawai‘i vacation is way up, driving record room rates and occupancies. Most hotel properties have climbed out of the global financial crisis that began in 2008 and are now generating the profits needed to catch up on deferred expenses that weren’t affordable a couple of years back. Waikīkī is looking beautiful, the hotel rooms are upgraded and clean, and our visitors are having wonderful vacations. On the other hand, an economy vacation in Waikīkī is at risk of becoming a thing of the past, and the national news has recently highlighted this reality. A survey conducted by TripAdvisor put Honolulu at the top of its “most expensive” list and found that one night at a four-star hotel, with cocktails, dinner, wine and taxi, would cost $504.94. That’s even more than New York City! A recent CheapHotels.org survey found that during the recent Presidents’ Day weekend, our visitors were faced with spending a minimum of $294 per night for a three-star hotel room within a mile of the beach. Ouch! This is a serious issue since there are many competing destinations that would love to undercut Waikīkī’s prices and steal our business. We may be pricing ourselves out of the economy market altogether. We would be well advised to remember that Waikīkī grew into the popular destination it is today thanks in large part to the presence of many hotels catering to the needs of “Mr. and Mrs. Middle America,” something that my grandparents, Outrigger founders Roy and Estelle Kelley, played a major role in creating. As a concrete example of the lack of economy-priced hotel rooms, last year Hawai‘i was selected as the location for the 2013 U.S. Youth Soccer Region IV (West) Championships. This tournament draws teams from 14 states, and based on past experience, the organizers

anticipated a Hawai‘i attendance of 4,500 players and 15,000 spectators. In creating their hotel room blocks, they reserved enough space to accommodate 232 visiting teams. Over the course of the year, youth soccer teams across the western United States competed to qualify for the tournament. But when the winning teams went to book their reservations, many were shocked to find they just could not afford the trip, including airfare, hotel accommodations and food. Some teams abandoned the hotel industry and found housing in private homes, condo vacation rentals and university dormitories. Eighteen teams gave up altogether, canceling their plans and declining the invitation to play. Imagine the disappointment of those players and families who worked so hard and were so looking forward to a trip to Hawai‘i and the championship tournament! Worse, imagine the impression that must have made on thousands of friends and family members who have also been dreaming of vacationing here one day – and have now learned that Hawai‘i’s high prices have very likely put that dream out of reach. Middle-class American leisure travelers are the largest segment of the market and they have always served us well. To lose this business today will make the next downturn even more painful. And it is guaranteed that that in our cyclical economy, there will be a downturn. There are no easy answers, and we are going to need ideas from everyone to keep Waikīkī’s visitor industry diversified and able to accommodate a wide range of travelers. In the long run, each market segment is important, and we neglect any of those segments at our peril. The high cost of doing business contributed to the decline of agriculture in Hawai‘i. We cannot let it erode the foundation of our visitor industry – the engine of our entire economy – as well.

Mel Hits It Out of the Park << From 1

Mel signs the main support beam at the Waikiki Beach Walk® Topping Off Ceremony

Mel’s dedication, determination and vision recently garnered him NAIOP Hawaii’s (National Association of Industrial & Office Properties) Lifetime Achievement – Holo Pono Award at its 2013 Kukulu Hale Awards. Met with a standing ovation for his sustained contributions to Hawai‘i’s commercial real estate industry and his civic and community involvement, Mel has created a significant and positive awareness of commercial real estate in Hawai‘i. Having set the groundwork for our continuing expansion, there is no question that Outrigger will continue to reap the fruits of Mel’s labors long after he “hangs up his uniform.” Mel is an avid collector of vintage Hawaiian photographs. Deeply interested in the culture and beauty of old Hawai‘i, Mel’s commitment to new Hawai‘i will remain visible and be enjoyed by hundreds of thousands of visitors and locals alike for years to come. When he, his wife Nancy and their kids Pace and Tate got involved with the Junior League of

Honolulu years ago, Mel got hooked on volunteerism. Nancy has continued as a nonprofit consultant with extensive travel abroad, and Mel is looking forward to joining her in this important humanitarian work.

Mel’s mantra is “We always need to think about what we can do better.” Whether at work, in service of others or at home, you can bet Mel will create change for the better. Congratulations, and thanks for pitching a “perfect game” Mel!