AC Hotel Honolulu — Photo by Highgate Hotels, L.P.

For many decades, visitors to the Hawaiian island of Oahu had just one neighborhood to choose from when booking a hotel. Waikiki–that iconic mile-and-a-half strip of white-sand beach ringed by more than 26,000 hotel rooms–was the only place where hotels could be found.

That started to change in 2016, when brands like Four Seasons and Disney began opening hotel properties on the west side of Oahu. These developments then left travelers with two choices: vibrant, lively Waikiki Beach or luxurious but remote West Oahu.

Today, though, something interesting is afoot in downtown Honolulu–which is best known as a busy city center and financial and military hub that’s home to the state capitol, government agencies, Hawaii’s main port and the area’s biggest hospitals. Travelers, industry decision makers and even locals are beginning to realize the vast, mostly untapped potential for hotel stays in downtown Honolulu.

Highgate Hotels has opened two properties in downtown Honolulu within the last year. In January we opened the 112-room AC Hotel Honolulu near Chinatown–which, until this year, was perceived as a risky proposition by many people on the island. After all: Who wants to stay in a busy downtown neighborhood instead of adjacent to one of the world’s most famous beaches? But AC Hotel Honolulu has been an incredible success since the day we opened, and it’s already exceeding initial RevPar projections.

Lobby of the AC Hotel Honolulu — Photo by Highgate Hotels, L.P.Lobby of the AC Hotel Honolulu — Photo by Highgate Hotels, L.P.
Lobby of the AC Hotel Honolulu — Photo by Highgate Hotels, L.P.

It turns out visitorship to Oahu is actually quite diverse–including scores of business travelers, medical travelers and hospital visitors who appreciate the convenience of a downtown stay. We’ve also seen increased interest from locals who come downtown for a show or other cultural event, and love the option of staying over instead of driving home in the dark. We’ve learned from our downtown visitors that they’d previously stayed at or near Waikiki beach not necessarily because they wanted to–but because it was the only option available.

In March we opened The Renaissance Honolulu on busy Kapiolani Boulevard, right in Honolulu’s urban core (and just a few blocks from Ala Moana Center, the largest open-air shopping center in the world). The 39-story property–the first new-build hotel in Honolulu in 30 years–has also been exceptionally well received. Of course, building an urban hotel–even one on a Hawaiian island–calls for a different approach than beachside. Business travelers tend to be more discerning and they typically expect convenience, flexible workspaces and meeting spaces, high-end fitness facilities, and world-class dining options.

Accordingly, the Renaissance Honolulu is one of the best amenitized hotels in all of Honolulu, with a 25 meter lap pool, a spa and wellness center, and a sports-club-inspired fitness facility. The vast eighth floor Sky Deck is an urban wellness sanctuary fit for our most spa-literate guests. Beyond the full-service spa, the Sky Deck also includes meditation gardens, a fully equipped fitness center with state-of-the-art LifeFitness and Peloton equipment, a glass-enclosed yoga studio, Oahu’s first traditional Japanese ofuro indoor and outdoor soaking tubs, Himalayan salt saunas, steam rooms and cold plunge baths.

The incredible art program throughout the hotel’s public and private spaces is the result of a partnership with renowned local artist and designer Sig Zane, who helped us incorporate surprising design touches that authentically draw upon local aesthetics and traditions. Rooms at Renaissance Honolulu have a distinctly residential feel, with hand-crafted furnishings, large bathrooms with deep soaking tubs, and floor-to-ceiling glass windows showcasing iconic views of Oahu’s South Shore. And the concierge program is top-notch, offering everything from a daily Mercedes shuttle to pre-arrival groceries delivered via room service.

Yours Truly cocktail bar at the AC Hotel Honolulu — Photo by Highgate Hotels, L.P.Yours Truly cocktail bar at the AC Hotel Honolulu — Photo by Highgate Hotels, L.P.
Yours Truly cocktail bar at the AC Hotel Honolulu — Photo by Highgate Hotels, L.P.

A downtown hotel is also an opportunity to bring a sophisticated food and beverage program that can be utilized by both guests and locals. We took this opportunity to introduce a completely unique concept with Mara. The eatery is both a restaurant and a celebration of the Mediterranean way of life and its shared principles with Hawaiian culture–including respect for land, people, and culinary traditions. We’ve had many repeat visits from locals who appreciate the distinctive venue and, of course, the food–including hearth-baked pitas and locally sourced seafood presented with Mediterranean flavors like harissa, fennel, olives and tzatziki. The restaurant also hosts monthly wine events that showcase small, family-owned wineries, particularly those that cultivate indigenous grape varietals. Events like these–plus a seasonally changing menu–give local residents a good reason to return yet again.

Down the street, at the AC Hotel Honolulu, we created a singular urban oasis with more than 2,500 square feet of versatile indoor and outdoor executive meeting space. In addition, informal meeting spaces can be found in the vast, stunning lobby with multiple lounge areas plus a bar and restaurant–ensuring that the hotel can accommodate all types of meetings and get-togethers.

The property offers comprehensive amenities and services to accommodate a spectrum of business events, but the wow-factor amenity at AC Hotel Honolulu is undoubtedly the Tiki-themed speakeasy, called Yours Truly. Guests enter through a hidden door that’s designed to look like post-office boxes, in a nod to the site’s former life as a satellite post office. They then enter a whole new underground world complete with a thatched ceiling, bamboo accents, authentic vintage collectibles and colorful sea glass-netted lanterns. Yours Truly’s adventurous cocktail menu draws on local inspiration and ingredients–think ingredients like coconut-washed cognac, orchid-infused vodka or KoHana Distillers’ cacao and honey infused rum. The fully immersive experience is the first of its kind for Honolulu; it, too, has been remarkably well-received.

Rooms at AC Hotel Honolulu are the ultimate business traveler’s escape, with intuitive technology and plenty of space to spread out. The guest rooms are designed to be soothing, with a neutral palette and an abundance of natural materials to help ensure a good night’s rest after a long, productive day of work.

Lobby of The Renaissance Honolulu — Photo by Highgate Hotels, L.P.Lobby of The Renaissance Honolulu — Photo by Highgate Hotels, L.P.
Lobby of The Renaissance Honolulu — Photo by Highgate Hotels, L.P.

Downtown Honolulu is one example of how hotel companies can successfully adapt to shifting demand patterns–or even help to create new ones. While Waikiki remains Highgate’s bread and butter on the island of Oahu, we’ve been rewarded for introducing high-end hotel options outside the Waikiki core. At Highgate we constantly ask ourselves “What’s next?” We have recognized downtown Honolulu’s potential for many years and we’re thrilled to have been part of launching these two best-in-class hotels in the center of downtown. And our work isn’t done: We recently took over management of the revered Kaimana Beach Hotel just east of Waikiki, inside Kapiÿolani Regional Park.

Tourismto Oahu is increasing , along with visitor spending and the average length of stay. Construction is currently happening at a record pace, and new projects like the recently renovated Pearl Harbor Aviation Museum and the Ford Island Control Tower are inspiring even more traveler demand and interest. City planners and real estate developers are taking notice, too. Downtown Honolulu is brimming with ambitious projects like the mixed-use Modea building–an adaptive reuse project that includes restaurants and high-end condos with swanky amenities like private cabanas. Thousands more downtown apartment units are being planned as I write this, and the Honolulu Authority for Rapid Transportation is working to expand public transport to the downtown core. Honolulu is now home to the first fully autonomous elevated rail network in the United States; that Skyline Rail Project will soon be expanded into downtown.

And, since change is the one constant in life (and in business), it is crucial to both anticipate and embrace new realities with a proactive mindset. We know that travel and demand patterns will continue changing, and that new opportunities will arise in tandem with those new trends. Medical tourism, for example, is a still-burgeoning field that could significantly increase traveler interest in downtown Honolulu. People from across the region frequently journey to the city for a variety of medical services and treatments; these travelers could benefit greatly from convenient accommodation options in downtown Honolulu, minimizing the need for lengthy commutes between medical appointments and beachside accommodations.

MARA restaurant at The Renaissance Honolulu — Photo by Highgate Hotels, L.P.MARA restaurant at The Renaissance Honolulu — Photo by Highgate Hotels, L.P.
MARA restaurant at The Renaissance Honolulu — Photo by Highgate Hotels, L.P.

Additionally, there is potential to develop more extended-stay and select-service lodging options across Honolulu, including in the central business district. This opportunity aligns with the ongoing workcation trend, which shows no signs of waning. As more professionals try to blend work and leisure, extended-stay accommodations that cater to both business and personal needs become increasingly valuable.

The landscape of Oahu’s tourism industry has undergone a remarkable transformation in recent years. The island’s visitor demographics are now more diverse than ever before. We expect that trend to continue, and we anticipate that the coming years will yield an even deeper understanding of the unique preferences and requirements of visitors to Oahu.

At Highgate Hotels, nurturing a thorough understanding of travel trends and guest preferences is an integral part of our DNA. We are committed to constantly analyzing emerging trends, staying abreast of news, and observing shifts in visitor patterns and attitudes. This approach allows us to stay ahead of the curve and adapt our offerings to meet the ever-changing needs of our guests. Our goal is not only to respond to current trends but also to anticipate future needs, sometimes even before our guests themselves are fully aware of them. After all, we’re in the hospitality business–and to be truly hospitable, we must continuously adapt to our guests’ changing needs.

Reprinted from the Hotel Business Review with permission from http://www.hotelexecutive.com/.