Kauai News & Information

Timeshare Owners at Hanalei Bay Resort Can List Resales for Free

Princeville, Kauai, Hawaii – November 24, 2009 — SummitPacific.com, already a leader in marketing Kauai vacation rentals, is now letting owners of timeshare units a free way to advertise timeshare resales at Hanalei Bay Resort.

Hanalei Bay Resort, a beautiful 22 acre destination resort on the north shore of the Hawaiian island of Kauai is located next door to the new St. Regis Princeville Hotel. The resort has both timeshare ownership and also full unit ownerships. SummitPacific has long provided a way for owners to advertise full owner condos for rent in the popular vacation rentals market, but now for the first time, SummitPacific is also allowing those that have purchased timeshares at Hanalei Bay Resort a way to resale their interval ownerships.

Advertising Timeshare Resales at Hanalei Bay Resort is Free on Summit Pacific.

“What we’re trying to do is offer those that purchased timeshare ownerships at the resort a way to resale those units without incurring a lot of expenses.” said Doug Porter, president of Summit Pacific, Inc (and also a condo owner at the resort). “Creating an aftermarket for timeshares is healthy for the market and takes a lot of uncertainty and fear out of decision to buy a timeshare because people know when they buy they will also have a way to resale it later if they need to.”

Of course the timeshare resale market is great place to pick up deals on vacation rental ownership; especially right now when many people are struggling with financial problems caused by the poor economy. “We’re seeing people offering their weeks for unbelievably low prices – sometimes as low as 10 cents on the dollar.” “This is primarily a short term result of the bad economy and also by the frustration people have had in not having a good way until now to re-sale their units.” “Once these deals are gone, we expect the market to stabilize.”

Summit Pacific is not affiliated with Hanalei Bay Resort or the primary resellers of timeshares at the resort. “We feel we’re more affiliated with the individual condo and timeshare owners at the resort than we have been with the resort operators,” says Porter.

Because of last minute cancelations and a sluggish economy, owners of vacation rental homes and condos are finding themselves with a lot of nights that often go unrented. Most owners are happy to discount these nights in order to try to fill their calendars and keep their properties rented.

Many deals and discounts are available around the internet. Summit Pacific has a way for owners to advertise these deals on its Hawaii Vacation Discounts page. If you’re able to fly to Hawaii on short notice (usually within the next 30-60 days) you can find incredible savings; often up to 40% off the normal price.

Spectacular ocean view condos at Waipouli Beach Resort that normally rent for around $350/night are often available for $199. Some units at Hanalei Bay Resort are available now for $89/night.

Because the discounts offered on Summit’s Pages fluctuate from day to day, you need to move fast on these discounts.

Hanalei Bay Resort owners reach agreement with management

By Coco Zickos – The Garden Island
Published: Friday, October 9, 2009 2:11 AM HST
HANALEI — An agreement has been reached between Hanalei Bay Resort owners and Florida-based management company Celebrity Resorts, according to a letter sent this week to members of the Vacation Owners Association and the Association of Apartment Owners.

Several allegations were made in recent months by timeshare and full-time condo owners regarding Celebrity Resorts’ involvement with the 30-year-old property. Since then, members of the VOA and AOAO Board of Directors, along with their legal counsel, had a “very busy summer” involving “confidential discussions with Celebrity Resorts,” the letter states.

California-based Trading Places International will assume management duties at the North Shore vacation destination, but Celebrity Resorts will continue to own Bali Hai restaurant and Happy Talk Lounge, the letter says.

TPI was one of the six management companies board representatives contacted when they sought “alternative management.”

“Their references are outstanding,” the letter says.

Celebrity Resorts will continue to have “exclusive rights to market timeshare sales at HBR and to rent unused timeshare weeks under an agreement with the VOA.”

“… We look forward to working with them in a harmonious relationship,” the letter states.

It was previously reported in a July 4 article titled “Hanalei Bay Resort owners battle management” that one reason owners sought to terminate Celebrity Resort’s contract was its inability to recognize board members of the VOA elected prior to management transitions.

However, there will be “a reconciliation and redefinition of association operational control in favor of the owners and the installation and empowering of a member-only board of directors,” according to the letter.

Dick Schweickert, VOA president, said he was “happy” with the outcome, but declined to make further comment due to “confidentiality.”

“I’m cautiously optimistic,” timeshare owner Lynn Kettleson said Wednesday. “It looks like a good resolution, but we’ll see how the details work out.”

Though he couldn’t speak for other owners, he said the boards should be “commended for doing a wonderful job of resolving this issue.”

A transition will occur where an auditor will “review all income, expenses and advances made by Celebrity for both of the association’s financials to generate a final monetary settlement.”

HBR employees will become TPI employees and it is TPI’s plan to retain “most” of them, according to the letter.

Vice President of TPI Resort Management Douglas Wilcox said they are “very excited,” but was unable to provide further comment at press time.

Attempts to reach Celebrity Resorts for comment were unsuccessful.

Press Release from Hanalei Bay Resort Board of Directors

Settlement Agreement with Celebrity:
We have reached an agreement between Celebrity Resorts and the VOA and the AOAO, which settles the various legal issues between them. As you know, Celebrity purchased Quintus Vacation Management last year which included the VOA and AOAO management contracts along with certain Developer Rights. They also purchased Apartment 16-A – the Happy Talk Lounge and the Bali Hai Restaurant.
The Settlement Agreement enables the buyout of the two management contacts from Celebrity and restores the member elected VOA Board installed last year. The AOAO will have a right of first refusal on a future sale of Apartment 16-A, and some rights to lease or subsidize operations of the Happy Talk Lounge in the event Celebrity feels it is not a profitable operatio n and wishes to close it. The re-opening of the Bali Hai Restaurant is an economic decision that will be made by Celebrity as the restaurant owner—it is currently open on a limited basis.
The result is a cessation of excessive legal expenses, a reconciliation and redefinition of Association operational control in favor of the owners, the installation and empowering of a member only board of directors, the hiring of a new professional management company and the onset of a bright and exciting future for Hanalei Bay Resort and you, the members.

New Management Company – Trading Places International (TPI)
The VOA and the AOAO Boards have executed agreements with TPI, a resort management company based in Laguna Niguel, California. TPI manages three resorts in Hawaii plus another 19 in the US and Mexico. TPI was one of six management companies the Boards contacted when we sought alternative management, and their references are outstanding. The agreement with TPI will initially be for a three year term, renewable, but entirely under the control of the two respective Boards. TPI will begin the transition of management of the resort as soon as all legal documents have been cleared which will occur early in October—Started Today!

Transition Period Planned / Employees Retained / Board Meeting Planned:
There will be a transition period during which an independent auditor will review all income, expenses and advances made by Celebrity for both of the Association’s financials to generate a final monetary settlement. We are also trying to resolve the lack of accounting records from Quintus when Celebrity acquired the contracts. This has been a problem in completing our 2008 audit.
The resort employees will become employees of TPI. We have compared benefits and salaries to insure that employees do not lose in their transition to TPI. It is TPI’s plan to retain most of our employees. An AOAO and a VOA Board meeting is planned for October 17, 2009 at the resort to review the transition, prepare the 2010 budget and complete some long term planning.

Celebrity Resort’s Continued Presence at HBR:
Celebrity continues to own the restaurants and we look forward to working with them in a harmonious relationship. Their success will benefit each of our owners and guests. As part of the Developer Rights (which Celebrity owns), they will have exclusive rights to market timeshare sales at HBR and to rent unused timeshare weeks under an agreement with the VOA. The AOAO will lease a portion of the Aikane Room (now exclusively the timeshare marketing office) and the Food and Beverage Office on the lower level to Celebrity. The Concierge desks in the lobby will be operated by TPI under a lease with the AOAO, with timeshare marketing leads referred to Celebrity.

2009 Regular Dues Payments:
TPI will be providing the VOA interval owners with continued service for the payment of annual fees. They will also be providing the AOAO owners with regular monthly statements so the AOAO owners can complete their regular payments on time. In the meantime AOAO owners should pay their monthly dues to the AOAO account in Princeville. If you are a VOA owner and you are delinquent in the payment of your fees, we would ask and highly recommend that you pay curren t. The Board is securing our future and it is bright and your timeshare will have great value for excellent vacation experiences you bargained to own.

Resort Update:
Operations at the resort are generally positive except for the spa. The resort has incurred numerous maintenance challenges with the gas fired heater and pumps this summer. Through the leadership and experience of AOAO Board member Dave Blank, who is a resort manager himself in Colorado, the AOAO board has approved rebuilding and replacement of the heater and pumps. There is a great need to build the AOAO and VOA reserves to the legally mandated levels, and to make major improvements in the VOA units and the boards will be taking on these challenges immediately. There will be a need for an owner assessment, the amount of which is currently being determined. You will be receiving more detail on the assessment along with other information in the next week or so.

Successful Negotiating Team:
Many thanks to the Board appointed negotiating team for the Settlement discussions. They have put in numerous hours and great personal effort. Thanks to Bill Kraft and Kent Oehm representing the AOAO; and Dick Schweickert and David Nicholl representing the VOA; and Bill Byrns and Ralph O’Neill our legal counsel.
We extend to you our deepest appreciation for your support and patience during this difficult process. We understand that you have been worried and upset over the recent circumstances surrounding your ownership. We thank you for your participation and recommendations and we know that you will be pleased that we have been able to work so well with Celebrity Resorts and arrive at a reasonable reconciliation and secure control of our beautiful resort and our future.

Sincerely,
The VOA and AOAO Board of Directors:

The front desk at Hanalei Bay Resort has been telling guests that the Bali Hai Restaurant will be opening starting today on a limited bases.

The Bali Hai Restaurant was closed nearly two years ago by the resort’s former operator Quintus Resorts, presumably for financial reasons although the official explanation was that the restaurant was being remodeled. Much to the chagrin of north shore patrons, resort guests and condo owners, the popular restaurant has remained closed even though it was purchased by Celebrity Resorts way back in August of 2008.

Although no official word has ever been given as to when the restaurant might officially open, the front desk has been telling condo owners and guests to spread the word that the restaurant will open on a “limited basis” on September 21st.

The Happy Talk Lounge re-opened in July.

by Doug Porter

Nearing completion of a $40 million renovation, the former Princeville Hotel will open this month under the ultra-luxury St. Regis brand. A soft opening is scheduled for September 26th with the long awaited official grand opening set for October 1st.
Soon to become Hawaii’s first and only St. Regis, this high-end luxury resort will certainly stir things up in Princeville on the north shore of Kauai which has been hit hard by the recent recession.

Over the past year many restaurants and shops on the island have been forced to close, adversely affected by the drop in tourist dollars. But Hawaii is starting to notice an uptick in visitor arrivals. Just as things are starting to turn around and visitors are coming back to Hawaii, the new resort will open with 252 guest rooms and 51 suites, four restaurants, several boutiques and shops, and a 10,000-square foot Spa and fitness center.

Although it might seem like bold move to open in this economy but the timing of the renovation was planned way before the economy took a nose dive. They had their plans and financing already in place and were able to do their construction and get the place built while tourism was down. Now they’ll open just as tourism on Hawaii is starting to show some signs of life. Things will probably be pretty soft until Christmas and hopefully a recovery will be underway going into 2010.

To celebrate the opening, the St. Regis is offering packaged specials which include free rounds of golf and other outdoor adventures, or free package deals at their spa and restaurant. But they are clearly marketing to the higher end guest with room rates starting at $465 dollars a night and going up to nearly $6,000 per night. It remains to be seen if those rates will hold up. They’re obviously going to be marketing to the rich and famous.

Those not willing to shell out the big bucks for a vacation at the St. Regis have other options. There are several other Kauai vacation rentals available in Princeville.

After waiting for over a year and putting up with the construction, owners of neighboring condos and rental homes are excited that the hotel is finally going to open. They’re expecting the St. Regis to help promote the island of Kauai and boost tourism on the island. They also expect that after seeing the rates that the hotel is planning to charge, (starting at about $500/night and going up to nearly $6,000/night) many guests will like what they can get next door at Hanalei Bay Resort and other condos in Princeville for a lot less money.

One condo owner at Puu Poa said he is excited to see the construction finally finished so that guests can stay in his condo and walk next door to the hotel to eat. “We’re planning to be there for the Grand Opening and we wish them well, but we won’t be spending the night.” “We’ll hang out on the beach with the celebrities but be able to come back to our own condo for some reality.”

Shortage of Rental Cars in Hawaii
By Doug Porter

An interesting thing happened this week. Hawaii car rental companies like Avis, Budget, Thrifty and all the others actually ran out of cars. Visitors to Hawaii are up and shortages exist on all islands.

For 8 or 9 months now, rental companies have been reducing the number of cars in their inventory to cut costs. Fleets have been reduced by more than 1500 cars, but the bump in visitors from President’s weekend and Mid-winter break caught rental companies by surprise. Either things aren’t as bad as they expected, or perhaps – dare I say it – we’ve rounded a corner?

Of course it’s too early to say, but the increase in visitors to the islands is a good sign. Not just for car rental companies, but for airlines, restaurants, hotels, vacation rentals and just about everyone else in Hawaii. And, if it’s the beginning of a national trend it could start to spread to other sectors. Rental car companies will start increasing fleets and helping automakers, etc.

I may be grasping at straws here, but I’ll take any good news I can get.

With tourism stalling in Hawaii and most of the rest of the United States, owners of vacation rental condos and homes are looking to woo vacationers back to the islands with great deals and special rates on their properties. SummitPacific is advertising those deals on a special announcement board called Hawaii Vacation Discounts which is helping to get the word out about the deals and special rates owners are now offering.

“We’re a vacation rentals by owner website; meaning most of the properties advertised on our website are managed by their owners” said Doug Porter, owner of SummitPacific . Our advertisers now have a way to post discounts directly to a large audience of people looking to rent their condos and homes.” “It’s sort of like a Blue Light Special, and deals of up to 50% off have been posted on the discount page.”

Getting to Hawaii is cheaper now too with carriers such as Delta and United offering one way fares as low as $174-$289 from select cities. Check This Link for Limited-Time Airfare Deals at Delta.com

Getting around the islands is less expensive too with car rentals offering lower rates on cars. The best way to rent a car is through an online company that specializes in Hawaii car rentals. These online companies can negotiate lower rates because of the large volume they generate and the savings are passed along to you. They also allow you to quickly compare the best rates of some of the biggest rent-a-car companies all in one place.

With prices this low you just might be able to afford a last minute vacation to Hawaii for Christmas or New Years.

By Duane Shimogawa

POIPU (KHNL) – Witnesses describe seeing a rare sighting at Brennecke’s Beach on Kauai’s south shore Wednesday as a painful to watch.

An ailing 20-foot killer whale was discovered around midnight Wednesday. Crews were forced to put it to sleep. But before they could do that, the whale died.

Nathalie Gilchrist and some friends got up early to take a walk on this beach. But it turned out to be a walk they’ll never forget.

“We came out here, a group of ladies and there was a killer whale, about 20-feet long, kept flipping over,” she said.

Crews prepared to remove the whale after veterinarians found its condition to be very poor.

“It was emaciated, you can see the ribs and you can see the neck of the whale,” NOAA Marine Mammal Response Coordinator David Schofield said. “The decision was made that if the animal didn’t perish on its own, that it would have to be put to sleep humanely.”

Crews pulled it out of the water and hauled it to private lands near the Old Koloa Sugar Mill.

“We expect to see a sick whale, obviously killer whales are very social species and to have a lone, single animal in this body condition on the beach, points to an animal that’s in big trouble,” Schofield said.

Still, some felt the young female whale should’ve been let go.

“Lot of people asked us why not push it out to sea, thinking free willy and all that but that’s really the wrong thing to do, an animal that’s sick like this comes ashore because it’s dying and it’s having trouble breathing,” Schofield said.

Gilchrist and others hope to never see this sight again.

“It was sad to see the whale laying there trying to survive, it was very sad, it kept blowing and pulling in air and but she would roll over and be upside down, that was very sad,” she said.

There were also several shark sightings in the area. Kauai County officials have closed Brennecke’s Beach. It’s not known when they’ll re-open it. The last stranded orca in Hawaii was off the coast of Lanai in 2004.

POIPU, Hawaii — Federal wildlife officials euthanized a sick killer whale after it washed ashore at the popular Brennecke’s Beach on the island of Kauai.

National Oceanic and Atmospheric Administration spokeswoman Wende Goo says the 18-foot-long female orca was emaciated and had shark bites, as well as whale lice. She says they are signs the orca had been sick for some time.

Goo says a Hawaiian cultural practitioner conducted rites Wednesday for the animal before it was killed.

A necropsy is to be performed to determine what was ailing the whale.

The animal washed ashore early Wednesday, attracting about 500 people. Killer whales are rarely seen in Hawaiian waters.

John Boulay is a manager at Brennecke’s Beach Broiler. He says people tried to push the whale back into the ocean, but it kept washing back.

Brennecke’s Beach is next to Poipu Beach on the south shore of the island.