In my posting on January 24, 2010 on “My vision as a Board Director candidate for the Ilikai and the Board” (see below), one of the key items pertained to my dream vision for the Yacht Harbor Tower (YHT). I wrote that my dream vision is that our Ilikai will unite back with the Yacht Harbor Tower. This will solve many problems for the Yacht Harbor Tower and its current owner (eRealty) and us. I believe it will be good for all parties involved. I also wrote that imagine how great it would be if iStar managed to work out some deal with eRealty to merge back the YHT and Ilikai hotels. Let’s encourage that!
Here is some elaboration on this thought. As you have all heard by now, the Edition Hotel is set to open at the YHT. The Edition Hotel is the Marriott’s new, top of the line, luxury boutique hotel brand. The Edition Waikiki is supposed to be the first ever Edition Hotel in the world. This is certainly a very exciting prospect, really something to look forward to. My dream then is that maybe our Ilikai Hotel can merge with the YHT hotel, so that we are again together, as one complex, the way the Ilikai has been for decades. Admittedly, it is not realistic for the super luxury Edition brand to be at our Ilikai as well. Let’s face it, our Ilikai needs a serious facelift. Our Ilikai has a huge potential, it just looks rather dated at this time and needs a facelift. But here is what Marriott could do: they could run the YHT as their Edition Hotel and then the Ilikai as some other of the Marriott’s brands. For example, if you have been to Las Vegas, then you are probably familiar with the MGM Grand. What many do not fully realize is that there are several hotel brands in the same MGM Grand complex. Specifically, the MGM Grand includes the main MGM Grand (Grand Tower, West Wing etc, with the check-in etc in the main tower), the Signatures (three condotel towers connected to the main MGM Grand complex with a long covered walkway), and the Skylofts Penthouse Lofts (their five-star property, located on the upper floors of the main tower). These hotel components are part of the same MGM Grand complex, but differ significantly from each other and cater to different types of guests. This is very common. Many hotels have this type of setup these days. So in theory, what Marriott could do is to operate the YHT as their Edition hotel (luxury boutique) and then operate the Ilikai hotel as another one of the Marriott’s brands, such as the Renaissance, as we used to have at our Ilikai. I.e., something upscale but more conservative, especially considering the demographics of the Ilikai owners, many of whom are older. (Remember the Marriott Renaissance days? I bought my condo during that time. I came to the Ilikai, and it swept me off my feet, with its beautiful courtyard, happy hotel atmosphere etc – and NO timeshare at that time.) I know the above vision is far fetched, but that’s my dream, I am brainstorming.
Also, again, keep in mind that luckily, Shell’s timeshare at the Ilikai is NOT ”deeded.” Some timeshare is deeded, i.e., 50 or whatever number of timeshare owners hold the deed. But in the Shell’s case at the Ilikai, it is Shell and NOT the timeshare owners who actually own those 123 units. What this means in practical terms is that it would be relatively easy for Shell to sell their 123 units and get out of here. Also keep in mind that all of Shell’s units are uniformly remodeled and decorated. Therefore, should iStar buy those units from Shell, they can easily add them to the other 203 hotel rooms that they own. Let’s encourage this to happen!