outrigger enterprises
DESCRIPTION
outrigger enterprise HOTELTRANSCRIPT
OUTRIGGER ENTERPRISES, INC.
Outrigger Enterprises, Inc.
is an investment holding
company focusing on real
estate, hospitality
management and related
businesses. The company is
committed to consistent
cash flow growth while
achieving market returns on
shareholders’ equity.
M I S S I O N S T A T E M E N T
Outrigger Enterprises, Inc. is
the privately owned, Honolulu-
based parent of Outrigger Hotels
& Resorts (OHR), the largest
full-service lodging and hospitality
company in Hawaii and the
fastest-growing lodging company
in the Pacific.
W. David P. Carey III
President and Chief Executive Officer
Outrigger Enterprises, Inc. hastwo operating divisions:
Outrigger Hotels & Resortsmanages and markets hotels,resorts and condominiums.
Outrigger Propertiesowns a variety of real estateassets, primarily in thehospitality business.
It is our pleasure to provide an
overview of Outrigger Enterprises, Inc.
and its affiliated companies.
COMPANY OVERVIEW
Dr. Richard R. Kelley
Chairman of the Board
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PacificNeighbor IslandsWaikiki PacificCondominiumsWaikiki
13,000
12,000
11,000
10,000
9,000
8,000
7,000
6,000
5,000
4,0001993 1994 1995 1996 1997 1998 1999 2000R
Total Rooms1993 - 2000
Total Properties1993 - 2000
45
40
35
30
25
20
15
101993 1994 1995 1996 1997 1998 1999 2000R
OUTRIGGERENTERPRISES,
INC.
OUTRIGGERHOTELS
& RESORTS
•INVESTMENTS
•
OUTRIGGERPROPERTIES
REAL ESTATE
•Hotels
•Resorts
•Development
•
HOTEL & RESORTMANAGEMENT
•Hotels
•Resorts
•Condominiums
•
2
Hotels, Condominiums and Resorts
Real Estate Holdings
Sales Offices
Reservations Representatives
Corporate Offices
Outrigger Enterprises, Inc.and its operating companies servewhat many consider to be the largestand most dynamic industry in theworld today — travel and tourism.Globally, travel and tourism generatean estimated $4.5 trillion in grossoutput, and provide approximately200 million jobs. American tourismalone generates some $1.2 trillion ayear in gross output and 17.5 millionjobs. Travel and tourism may wellbe the most important growthindustry of all time.
From simple beginnings in Hawaii,more than a half century ago,Outrigger Enterprises, Inc. hasexpanded and prospered in traveland tourism. Today, OutriggerEnterprises, Inc.’s marketing,operations and investments reach around the world.
OUTRIGGER ENTERPRISES INC.’S GLOBAL REACH
Guam
3
Outrigger Hotels & Resortscurrently operates or has underdevelopment 41 hotels and resortcondominiums throughout Hawaiiand the Pacific region, representingapproximately 12,000 hotel roomsand condominium units. Outriggeris recognized in the travel industryas one of the world’s leading hotelchains, serving the industry throughoffices and marketing affiliates onevery major continent.
Outrigger Properties is a realestate investment and assetmanagement company. It owns aportfolio of hotels and resortproperties in Hawaii.
Moorea Tahiti
Majuro
Fiji
4
The most vital part of OutriggerEnterprises, Inc.’s operatingcompanies is Outrigger Hotels &Resorts, which manages, operatesand markets hotels, resorts andcondominiums in Hawaii andthroughout the Pacific.
With approximately 12,000 rooms,Outrigger Hotels & Resorts is thelargest hotel operator in Hawaiiand throughout the Pacific, andalso the most unique in terms ofaccommodations and locations.Rooms and services range fromdeluxe, full-service resorts fordiscriminating upscale travelers tolimited-service accommodationsfor budget-conscious vacationers.
Outrigger Hotels & Resortsrebranded 15 existing limited-service Outrigger hotels to form a new brand, OHANAHOTELS. This brand is dedicated to providing quality
OUTRIGGER HOTELS & RESORTS
M I S S I O N S T A T E M E N T
Outrigger Hotels & Resorts
We will grow together as the
leisure hospitality company
of choice by providing:
Our employees anopportunity to be their best,
Our guests with distinctivehospitality and value,
Our owners with promisedresults,
Working as a family in harmonywith the culture andenvironment of the placeswhere we do business.
Outrigger
Waikoloa Beach
Perry Sorensen
Chief Operating Officer
Outrigger Hotels & Resorts
A Leading HospitalityCompany in Hawaii andThroughout the Pacific
accommodations at moderateprices. OHANA HOTELS provides friendly, reliablehospitality, comfortable, well-maintained accommodations,and easy-to-book pricing.
Neighbor Island Properties
Over the years, Outrigger hasfocused on an aggressive strategyof operating deluxe, full-service,beachfront hotels on all of Hawaii’smajor islands and throughout thePacific. In October 1999, theOutrigger Waikoloa Beach openedfollowing a $25.5 milliontransformation that updated theproperty’s public areas, pool, guestrooms and meeting facilities.Equally as dramatic, atransformation in 2000 for theOutrigger Wailea Resort on Mauibrings this 22-acre property in-linewith the company’s strategy.•
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Outrigger Sun City Resort
Outrigger has experiencedtremendous success over the yearsin Hawaii’s fast-paced andcompetitive tourism market. The company is now using itsexpertise to expand into the Asia-Pacific region. Outrigger isaggressively expanding to have asmany as 20 new Outrigger-brandedresort properties in the Pacificunder management or development in the near future.Current successes include:
GUAM
The new 600-room Outrigger Guam Resort occupies a primelocation on Tumon Bay and is oneof Guam’s finest resort properties.
THE MARSHALL ISLANDS
The Outrigger Marshall IslandsResort on the island of Majuro isthe largest international-class hotelin the country.
FRENCH POLYNESIA
The 200-room Outrigger HotelTahiti opened in mid-1999 on a historic location near Papeete,overlooking one of the most scenicbays on the island of Tahiti.
Construction has begun on theOutrigger Moorea Lagoon Resort, a110-room hotel being built on thesite of the former Moorea LagoonHotel on the island of Moorea.
F
FIJI
The 255-room Outrigger Reef Fiji Resort will open in summer2000, featuring first-class beachfront accommodations and a full range of guest amenities on more than 400 acres.
AUSTRALIA
Outrigger’s joint venture inAustralia, Outrigger ParadiseApartments, operates and marketsfour condominium-style hotels inthe Surfers Paradise destination.
Three additional oceanfront properties are scheduled to open in early 2000 in Mooloolaba,Coolangatta and Cairns.
Outrigger Hotel Tahiti
Pacific Properties
Outrigger Marshall Islands Resort
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One of the most distinguishingfeatures that sets Outrigger Hotels& Resorts apart from other hotelcompanies is the combination oftraditional values and state-of-the-art technology. This combinationhas given Outrigger a track recordof customer, owner and employeesatisfaction unequaled in thehospitality industry.
As a manager for other owners,Outrigger Hotels & Resorts providesdistinct benefits:
A widely recognized commitmentto guest satisfaction through warm hospitality based on therenowned “aloha spirit” of theHawaiian Islands where Outriggerhas its roots.
Value-based management that recognizes the importance of each employeeunderstanding his or her role in providing flawless hospitality.
A hotel owner’s perspective,including a thorough understanding of a propertyowner’s major concerns, and afocus on profitability.
Outrigger Hotel Tahiti
Outrigger Guam Resort
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Hotel and ResortManagement
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Outrigger’s employees are the
company’s greatest assets.
Outrigger Hotels & Resorts’ uniquecorporate culture reflects itsHawaiian background and stressesthe Island concept of ho‘okipa,hospitality. Each employee is partof a continuing education processcalled Ke ‘Ano Wa‘a, The OutriggerWay, which emphasizes variousaspects of the local culture andunique hospitality. This approach tohospitality is particularly well suitedto the Pacific and Asian locationswhere local traditions embracesimilar values, making Ke ‘Ano Wa‘auniversally appealing.
Caring Employees andCultural Awareness
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Outrigger Enterprises, Inc.’s rootsare in real estate. From its earliestdays, Roy Kelley, the company’sfounder, acquired real estate onwhich he designed, developed andoperated hotels. This formed thefoundation for Outrigger’s financialstrength today.
Substantial Waikiki Holdings
Outrigger Properties is responsiblefor the substantial real estateportfolio of Outrigger Enterprises,
Inc.’s companies. It is among thelargest landowners in Waikiki, withsome of the most valuable land inthe world. Outrigger Properties owns:
Two of the eight beachfronthotels on Waikiki Beach.
Almost one-quarter of all hotelrooms in Waikiki.
Nearly 19 acres of prime land in Waikiki.
OUTRIGGER PROPERTIES
M I S S I O N S T A T E M E N T
Outrigger Properties
is a real estate investment
and asset management
company that acquires,
manages and disposes of
assets to steadily increase
the overall value of the real
estate asset portfolio of the
company. It has a primary
orientation to hospitality-
related investments. Outrigger
Properties is committed to
investments with a potential
for increasing current cash
flows in geographic areas
that offer long-term
appreciation potential.
Mel Kaneshige
Chief Operating Officer
Outrigger Properties
Outrigger Properties
is one of the largest land
owners in Waikiki.
Successful Developmentsand Quality Investments
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Neighbor Island Holdings
Outrigger Properties owns the 22-acre, 547-room OutriggerWaikoloa Beach on the Big Island of Hawaii and the 20-acre, 516-room Outrigger WaileaResort on Maui. The properties are located on two of the bestoceanfront resort destinations in Hawaii.
Outrigger Waikoloa Beach
Development
Outrigger Properties has a long history of successful realestate development. Most of its Waikiki hotels were developed by the company. Today, OutriggerProperties is focused onredeveloping and repositioning its impressive Waikiki holdings,including its significant holdings onLewers Street. Over the pastdecade, Outrigger Properties’developments have included
nearly $250 million on 20 majorrenovations of its Waikikiproperties, including the successfulrepositioning of two beachfronthotels from mid-market propertiesto upscale resorts.
Quality Investments
Outrigger Properties seeks qualityinvestments that have a strongearnings record or the potential forenhanced returns with appropriateredevelopment and repositioning.
Outrigger Wailea Resort
Outrigger Wailea Resort
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With the foresight of our thenPresident, Dr. Richard Kelley,Outrigger launched its Web site,outrigger.com, in November 1994.Over the years, we have continuedto expand the information availableon the site and have developed asignificantly enhanced onlinebooking feature. Our award-winningsite has made significant strides inbeing interactive.
Destination information is a keycomponent that gives visitors tooutrigger.com a sense of place for
their requested hotel, condominiumor resort. Our site promotes thedestinations where our hotels residethrough extensive photography anddetailed travel guides. We believeour guests are not visiting adestination just to stay in ourfacilities, but have selected adestination for the experience,activities, culture, warm hospitality and the beauty of ouroutstanding locations.
An excellent vehicle for co-opmarketing efforts, our Web sitecurrently links to wholesalers andother travel suppliers, as well as adirect online booking capability.
Currently, outrigger.com receives:
over 1 million hits per week
over 85,000 page views per week
over 25,000 unique user sessions per week.
Interactive Marketing
The home page
of Outrigger’s
corporate Web site.
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Through the use of highlysophisticated financialmanagement systems, includingbudgeting and forecasting tools, Outrigger is able tosuccessfully provide its managerswith timely financial information. In addition, Outrigger’s financialservices organization has been able to leverage thesefinancial management skills in its strategic investments.
The strategic investments whichhave benefited includeopportunities beyond Hawaii and,in some cases, outside existinglines of business. Outrigger utilizes
its financial strength, financialreporting systems and investmentexpertise to enhance theperformance of its investments.
Outrigger’s strategic investmentsinclude:
Outrigger Lodging Services, aU.S. Mainland-based hotelmanagement company thatoperates approximately 3,300rooms located primarily in thewestern United States.
United Laundry, a moderncommercial laundry facility in Honolulu that handles the laundry needs of Outrigger Hotels & Resorts as well as other Waikiki hotels.
Duke’s Restaurants, populartheme restaurants in Hawaii andCalifornia, successfully operated by TS Restaurants, Outrigger’soperating partner.
Strong Financial Management Skills and Investments
Duke’s Canoe Club
relives the golden era of
Duke Kahanamoku and
the Waikiki Beachboys.
Left, Melvyn M.Wilinsky,
Senior Vice President and
Chief Financial Officer.
Right, Avery Aoki, Vice President,
Accounting and Finance.
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The Islander was the first newhotel to be built in Waikiki sincethe Royal Hawaiian Hotel 20 yearsbefore, and it was the first to focuson middle-income family travelers.
Working as a team, Roy and EstelleKelley built the ocean wing of theEdgewater Hotel in 1951, followedby the beachfront Reef Hotel in1955 and the Reef Towers in 1959.
In 1963, the lease on the oceanfrontland occupied by Outrigger CanoeClub was expiring. The Queen EmmaEstate, the owner of this beautifulpiece of beachfront property, wasnegotiating a long-term lease withSheraton Hotels. When talks brokedown, Mr. Kelley stepped in,successfully negotiated a lease andbuilt the Outrigger Waikiki on thesite in 1967, becoming the firsthotel to bear the Outrigger name.
The construction of several other Outrigger hotels in Waikikicontinued during the 1970s. Mr. and Mrs. Kelley’s son, Dr. Richard Kelley, a successfulpathologist, left his medicalpractice to gradually assumeleadership of the family business.One of the most importantinnovations that Dr. Kelleyimplemented was the installation ofa newly developed computerizedreservation system to support thecompany’s growth.
During the late 1980s and early1990s, Outrigger expanded to theNeighbor Islands with resort hotels and condominiums on Maui, Kauai and the Big Island ofHawaii. Outrigger has nowexpanded outside of Hawaii withthe addition of hotels and otherproperty and business interests in the Pacific Islands.
Today’s Outrigger remainsdedicated to the principles andvalues started a half-century ago.Now, under the leadership of W. David P. Carey III, president andchief executive officer, Outrigger iscommitted to continuing its globalexpansion into the future.
COMPANY HISTORY
Outrigger began more than 50 years ago as the dream of Royand Estelle Kelley, who pioneeredthe development of the family-style hotel in Hawaii. Together theymade it possible for middle-classtravelers with value-mindedbudgets to vacation in paradise.
The Kelleys arrived in Hawaii in 1929. An architect by training,Mr. Kelley designed many ofHonolulu’s landmark buildings and private homes.
In 1932, the Kelleys constructed asix-room apartment building inWaikiki. Other apartment buildingsfollowed, including the 50-roomIslander Hotel on Seaside Avenuein 1947.
Roy and Estelle Kelley, pioneers
of Hawaii’s travel industry.
The Roy & Estelle Kelley Legacy
OUTRIGGER ENTERPRISES, INC.2375 Kuhio Avenue
Honolulu, Hawaii 96815Phone 808-921-6600 • Fax 808-921-6655
outrigger.com