KALUAOKAU Initial Master Plan Overview

KALUAOKaUTHE QUEEN EMMA FOUNDATION WAIKIKI PROPERTIES

Background Overview

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URBAN LABS PRESENTATION OUTLINE

UL Mission Statement and IMP Project Objectives

The QEF Waikiki Properties (Kaluaokau)

History and Context

Market Considerations

Property Profiles

Strategic Direction

URBAN LABS MISSION STATEMENT

Develop a strategy for The Queen Emma Foundation

to stabilize and enhance revenues from its Waikiki

Properties for the long term.

Establish an initial project at the International

Market Place sites that enhances QE Foundation

opportunities at adjacent sites with 2010 lease

expirations

Create a new Waikiki gathering place for locals and

visitors that showcases the local culture and heritage

Incorporate The Queen Emma Foundation values and

their mission of support of the Hawaiian people.


Subject Site

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QEF WAIKIKI PROPERTIES/INTERNATIONAL

MARKET PLACE FROM SPACE

ALA WAI TO WATERFRONT CONNECTION

KALAKAUA TO ALA WAI CONNECTION

KUHIO CORRIDOR

EWA VIEW

VIEW TOWARD BARBER’S POINT

VIEW OVER THE ALA WAI GOLF COURSE


History and Context

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WAIKIKIThe land of spouting waters

KALUAOKAUBeach retreat of “The People’s King”

and Queen Emma

THE NAVIGATORSMarquesan Sailors

THE NAVIGATORSCaptain Cook

THE LOCALSKing Kamehamaha

HELUMOAAncient Royal palm grove

THE LOCALSThe MacFarlane Family

APUAKEHAUA mountain stream to the sea

LOKOFishponds and water terraces

ISLAND DESIGNHale-based structures

THE LOCALSKing Lunalilo “The People’s King”

QUEEN EMMAEmalani Kaleleonalani

AINAHAU

“An Eden within Eden”

KALEHUAWEHEThe surf break at Apuakehau

A TRADITION OF ENTERTAINMENTDance pavilion at Waikiki

KAPIOLANI PARKin the days before Ala Wai

THE LOCALSDuke Kahanamoku

OUTRIGGER CANOE CLUBThe ancient sport reborn

SPORT OF KINGS

AN INDUSTRY BEGINSNew visitors and new business

AN AMERICAN EDEN

A VOYAGE BY SEA

AND BY AIRFor the privileged few

THE BEGINNING OF TODAY

HAWAII GOES HOLLYWOOD

THE LOCALSDon the Beachcomber

DON THE BEACHCOMBER

What it once was…….

HAPPY MEMORIES OF WAIKIKI

LALANI- A HAWAIIAN VILLAGE

A TROPICAL MARKETPLACE

….it can be again

International Market Place

We kept what you loved

and changed the rest


Market Considerations

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EXECUTIVE SUMMARY

The Queen Emma Foundation has a unique opportunity

to capitalize on its Kaluaokau properties and

stabilize its revenue base for the long term through

strategic property investments that address the new

Hawaiian visitor market.

The Queen Emma Foundation can at the same time

benefit all Hawaiians- by making the Kaluaokau

properties a gathering place for local residents and a

compelling destination for visitors, by enlivening the

rich history of Kaluokau and Waikiki, and the

people that have contributed to its past.

A FADING DESTINATION

Visitors are dissatisfied with Waikiki hotels, restaurants,

and airport

Waikiki has not kept up with global competition for its

primary market

Domination by three hotel brands has created complacency

Waikiki has the oldest visitor plant in the Islands

Smallest percentage of deluxe units

The lowest room revenues

Oahu has lowest visitor satisfaction rate of all the islands

A TROUBLED GATEWAY

Waikiki impacts the entire Hawaiian visitor industry

73 % of all Hawaiian visitors visit Oahu and Waikiki

For both visitors and non-visitors, Waikiki represents

Hawaii

Waikiki has lost much of its unique sense of

Hawaiianness

The Japanese visitor “bubble” is largely over

New feeder markets must be developed to lure new

visitors

Past visitors to Waikiki must be encouraged to return

IRREPLACEABLE ASSETS

The Kaluaokau properties are the most central location for

a much-needed Waikiki gathering place for visitors and

locals

The Kaluaokau properties are likely the only site in

Waikiki capable of a development of such significant scale

The International Market Place has a fifty year-old

reputation as a visitor and local destination

Existing hotel towers would be difficult to replace given

public sentiment and new regulations

A MARKET TO DEVELOP

Hawaii remains a dream destination for potential

visitors

Visitor satisfaction is high with non-Waikiki

destinations

Honolulu and Waikiki have the strongest base of

important Hawaiian cultural and historic attractions

Local operators have historically been complacent

Future known competition offers manageable

challenge

There are multiple feeder markets that remain ripe

for development

A SOLID FOUNDATION

Hawaii is a famous destination with broad appeal

Substantial base of satisfied past visitors to Hawaii

Honolulu has the cultural, recreational, entertainment and

visitor attractions of a cosmopolitan city

Oahu’s most unique natural attributes remain relatively

unspoiled

Waikiki is a safe American tropical resort served by a

variety of airlines

THE HAWAIIAN BRAND

“The most recognized brand in the world”

Unique Hawaiian history and culture

Popular food, music, arts and apparel

Stunning natural attractions

The Aloha spirit of its people

Famous luxury hotels and resorts

Classics: Moana and Royal Hawaiian, Hana Ranch

Modern luxury: Mauna Kea, Grand Wailea, Princeville

A SOPHISTICATED CUSTOMER BASE

Hawaii is considered an exciting tropical destination

particularly among upscale, married, college-

educated leisure travelers

Most target consumers live in counties located in

larger metropolitan areas with more than 85,000

households

Most visitors from the mainland currently come from

a handful of large west coast cities

INTANGIBLE ASSETS TO CONSIDER

Hawaii and Waikiki have an unique appeal that plays

directly to the specific mind set of the vacationer:

Experimentation- the exotic and unusual

Fantasy- a tropical paradise

Ambiance- the almost intangible attributes of an

escape from the everyday

The desire for memorable experiences


Property Profiles

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OUTRIGGER WAIKIKI HOTEL

MIRAMAR HOTEL AT WAIKIKI

OHANA EAST HOTEL

ABC STORE

QUEEN EMMA APARTMENTS

BEACHSIDE APARTMENTS

WAIKIKI REGENT

PERRY’S SMORGY

FOOD PANTRY

OHANA WEST HOTEL

HAWAIIAN PRINCE APARTMENTS

WHITE SANDS APARTMENTS

OUTRIGGER SURF- THE ORION???

HAWAIIAN KING APARTMENTS

WAIKIKI MARKET PLACE

HONOLULU PRINCE

THE BEACHCOMBER AT WAIKIKI HOTEL

WAIKIKI TRADE CENTER

CORAL REEF HOTEL

WATUMULL BUILDING


Planning Options

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DESTINATION RESORT COMPLEX including Miramar Hotel

MIRAMAR HOTEL OPTION

DESTINATION RESORT COMPLEXCoral Reef Hotel

CORAL REEF HOTEL

DESTINATION RESORT Miramar and Coral Reef Option

EXPANDED DESTINATION RESORTIncludes, Coral Reef, Miramar, Ohana Surf, Waikiki

Marketplace and Ohana West

EXPANDED DESTINATION RESORTOhana Surf, Waikiki Marketplace and Ohana West


Strategy for the Future

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Bring residents and visitors together at a gathering place

that restores the original significance of Waikiki for

Hawaiians

Enliven the historic meaning of Kaluaokau and Waikiki

for new generations through:

• Design

• Landscape

• Historic and cultural references

• Building elements

• Retail and restaurant tenants

• Live entertainment

• Events and Celebrations

RESTORE THE MEANING OF WAIKIKI

AN ICON REBORN:

THE NEW INTERNATIONAL MARKET PLACE

Expand on its reputation as an exotic, unique Hawaiian

experience to satisfy today’s more sophisticated visitor

market

Capitalize on its rich history and its traditional role as a

gathering place to create a new Waikiki focal point

Add new hotel, dining, and entertainment offerings to

create a new world-class resort destination

PROGRAM COMPONENTS:

Replace obsolete retail space

Increase GLA and specialty retail space

Update physical plant infrastructure- service, loading

Add more accessible parking

Expand and enhance with new attractions and

amenities to become Waikiki focal point

Connect and incorporate adjacent QEF Properties to

maximize adjacent property values through creation

of an urban resort complex.

A LARGER OPPORTUNITY

Address visitor market demands through repositioning of

the QEF hotel towers as destinations in their own right-

not commodities

Maximize values of the existing hotel towers through

coordination with other Kaluaokau properties to develop

an urban destination-resort

Encourage community support by redevelopment and

enhancement of existing hotel towers rather than new

construction

MANA - BASED PLANNING

Respects the heritage of the Kaluaokau properties

Recognizes and celebrates the historical figures and

events associated with the site

Encourages locals and visitors to develop a closer

relationship with Hawaiian history and culture

through crafts and performance

Incorporates principles of Restoring Hawaiianness to

Hawaii

Includes relevant elements of Waikiki Special

District Land Use Ordinance

FOUNDATION BENEFITS

A comprehensive, phased and scaleable strategy for

the Waikiki Properties through 2010 and beyond

Improved and stabilized revenue sources for the long

term

New institutional-quality assets for outside investors

A substantial roster of benefits to the local

community that will enhance The Foundations’

reputation

COMMUNITY BENEFITS

Promotes native Hawaiian culture and heritage

Provides a catalyst for additional Waikiki improvements

Upgrades Hawaii’s most important visitor destination

Establishes a new standard of quality development within

Waikiki retail and tourism industries

Adds new attractions to create visitor market interest

Enables the development of local independent businesses,

craftspeople and performers

Aids in economic diversification by nurturing local people

involved in native Hawaiian culture and traditions

Creates much-needed upgraded accommodations

URBAN LABS

RECOMMENDATIONS:

Proceed with planning for a phased renovation and

expansion/redevelopment of International Market

Place

Pursue early terminations for renovation and

repositioning of existing hotel towers with new

operators/market segments as part of IMP project.

Investigate potential for development sites at Kuhio

and Kanekapolei Streets at 2010 expirations

Finalize QEF development strategy/partner options

to capture current market opportunity

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KALUAOKAU Initial Master Plan Overview

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