Last week, Hawaii News Now reported that airlines are adding over a million seats on flights to Hawaii in the month of May. This means more potential for tourism and growth in the economy. It’s a great indicator that there is a lot more business to come over the summer months and could be profitable for many businesses and industries. They reported that most of the seats will be for neighboring island flights, which continues trends in business that we’ve noticed over the last year. There is a lot of potential for growth and new developments on the neighboring islands, something that these airlines are noticing as well. We are very excited about this growth and the potential boost for our islands’ economies. Let us know your thoughts in the comments!
Earlier this week, it was announced that Jin Air will be partnering with Island Air to offer inner-island connections from Seoul, Korea. This Korean airline will also resume their flights from Honolulu to Seoul five times a week starting May 29th. They paused this route due to maintenance on their Boeing 777 but it will be up and running very soon. We, at The Bratton Team, feel this announcement is a big step forward for Hawaiian-Korean relations especially when it comes to the commercial real estate market. As of now, Korea is our second biggest foreign real estate buyer and we are so excited that there will be flights 5 times a week directly to Honolulu. That means a lot more opportunities to sell and deal with these foreign investors, which could move Korea up to the number one spot over the next 5-10 years.
Last year, the single biggest purchase in Hawaii commercial real estate was made by a Korean investment company and this announcement will only continue this trend. We’ve noticed that our Korean investors have become more aggressive in the island market, as well as markets across the US. This partnership seems like a step in the right direction because Jin Air is going to bring so many more possible investors directly into Honolulu and Island Air will be able to connect those investors to the other islands seamlessly. As Dave Segal wrote in the Star Advertiser, “The agreement, which goes into effect today, means customers traveling on Jin Air between Honolulu and Seoul can connect to a neighbor island on Island Air, booking the reservation on a single ticket and checking luggage through to their final destination. The two airlines will have three interline routes, including Incheon-Honolulu-Kahului, Incheon-Honolulu-Kona and Incheon-Honolulu-Lihue. Jin Air will start interline sales today.” It will be an easy booking process for these potential investors and tourists. We are excited for the opportunities for the commercial real estate market, as well as the opportunities for our economy and tourism on the islands! We can’t wait to see what great things this partnership will bring to Hawaii.
A few months ago, I wrote about the new timeshare developments all over the islands. As we see more progress on these resorts, we are noticing a concentration of timeshares on the Kona/Kohala coast of Hawaii. Besides the Hilton Grand Islander in Waikiki, Hilton is busy converting the Hilton Waikoloa Village from 601 hotel units into 450 timeshares. The Waikoloa Beach Marriott Resort & Spa is converting 240 existing rooms into 112 timeshare units just down the road from the Hilton. The Haupana Beach Prince Hotel just finalized the sale of 96 of their 35o rooms to an affiliate of Angelo Gordon & Co to be converted into new five-star residences. All of these timeshares on the northern coast of the Big Island are a great indicator of the market and things to come for this area of Hawaii.
By our calculations, this is almost 700 new timeshare units throughout these three resorts and they are being offered 52 weeks a year. This kind of availability is unprecedented and we are excited to see what new opportunities come out of these units. These resorts and developments will create new jobs as well as bring families and guests back year after year. Besides bringing more people to Waikoloa, these timeshares will also increase the hotel room occupancy rates in the remaining hotels in the region, which is traditionally the lowest occupancy in the state. With so many rooms being converted into timeshares, there are less hotel rooms available and so the occupancy rates will be driven up. It is exciting to see so much concentration on this part of the island. While being built and sold, which will take a while, most of these resorts have a contingency plan so their rooms will stay open and available during the transition. It will be interesting to see how quickly they can sell these timeshares and if quick sales will help to expedite the developments. We will keep an eye on all of these resorts and will keep you updated as they progress.
Stay tuned for more updates and leave your comment below to let us know what you think about all these timeshare developments!
This is a new feature on our website; we will be reviewing the previous month’s commercial real estate sales in Hawaii. We want to keep you up to date with what’s going on and make sure you get all of the information possible. Please email us if you want more information on any of these properties, deals, or our current listings.
Our team is very interested in the co-working space trend that is popping up all over the islands. MyGoCenter has just opened a space in Kapolei and they are looking forward to many more locations on Oahu. Their second location is supposed to open before the end of the year. In his article, Dwayne Shimogawa writes, “The co-working space includes meeting rooms, WiFi access, a receptionist and mailboxes, among other services, and is open Monday through Friday from 9 a.m. to 5 p.m. ‘We’re finding that more and more workers today are becoming mobile, which means they’re looking for flexibility in their workspace options,’ David Do, general manager of MyGoCenter, said in a statement. ‘MyGoCenter offers them a place where they can work productively, and hold business meetings in a professional, private setting, instead of at a public, crowded coffee shop.'”
We are excited to follow this trend to see what opportunities and developments companies like this one will bring to our beautiful home.