A few weeks ago, I had an opportunity to play golf with the President of an International Hotel chain here in Hawaii. He reminded me that, although times are very tough at the moment in the hotel business, he is excited for the future.
Hotels in Hawaii
The majority of hotels in Hawaii were able to achieve major investments and upgrades over the past five years because of the good economic times. With their physical plant and furniture fixtures and equipment in such good condition, these hoteliers know that they will have quality product to offer for the next 10 years.
Hawaii Hotel Construction
In addition, this hotelier told me that he does not believe we will see a major hotel under construction in the state for the next 10 years, so that leaves their inventory of rooms and real estate a very valuable commodity.
He expects that in 2011 better hotels across the state will be able to start raising rates fairly dramatically because of the quality of their physical products.