The Queen Emma Foundation owns several properties in Waikiki, Hawaii including the International Market Place. A presentation was given with the following key points: 1. The properties provide an opportunity to stabilize the Foundation's long-term revenue through strategic redevelopment that addresses the evolving visitor market and benefits locals through culture and heritage. 2. Options discussed include redeveloping the International Market Place and adjacent hotels into a larger destination resort complex with new attractions, amenities, and accommodations. 3. The recommended strategy is to renovate the Market Place in phases and reposition existing hotels, while pursuing development of other sites to realize benefits for the Foundation, community, and visitor industry.

1. KALUAOKaUTHE QUEEN EMMA FOUNDATION WAIKIKI PROPERTIES
Background Overview
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2. 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

3. 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.

4. KALUAOKaU
THE QUEEN EMMA FOUNDATION WAIKIKI PROPERTIES
Subject Site
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5. QEF WAIKIKI PROPERTIES/INTERNATIONAL
MARKET PLACE FROM SPACE

6. ALA WAI TO WATERFRONT CONNECTION

7. KALAKAUA TO ALA WAI CONNECTION

8. KUHIO CORRIDOR

9. EWA VIEW

10. VIEW TOWARD BARBER’S POINT

11. VIEW OVER THE ALA WAI GOLF COURSE

12. KALUAOKaU
THE QUEEN EMMA FOUNDATION WAIKIKI PROPERTIES
History and Context
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13. WAIKIKI
The land of spouting waters

14. KALUAOKAU
Beach retreat of “The People’s King”
and Queen Emma

15. THE NAVIGATORS
Marquesan Sailors

16. THE NAVIGATORS
Captain Cook

17. THE LOCALS
King Kamehamaha

18. HELUMOA
Ancient Royal palm grove

19. THE LOCALS
The MacFarlane Family

20. APUAKEHAU
A mountain stream to the sea

21. LOKO
Fishponds and water terraces

22. ISLAND DESIGN
Hale-based structures

23. THE LOCALS
King Lunalilo “The People’s King”

24. QUEEN EMMA
Emalani Kaleleonalani

25. AINAHAU
“An Eden within Eden”

26. KALEHUAWEHE
The surf break at Apuakehau

27. A TRADITION OF ENTERTAINMENT
Dance pavilion at Waikiki

28. KAPIOLANI PARK
in the days before Ala Wai

29. THE LOCALS
Duke Kahanamoku

30. OUTRIGGER CANOE CLUB
The ancient sport reborn

31. SPORT OF KINGS

32. AN INDUSTRY BEGINS
New visitors and new business

33. AN AMERICAN EDEN

34. A VOYAGE BY SEA

35. AND BY AIR
For the privileged few

36. THE BEGINNING OF TODAY

37. HAWAII GOES HOLLYWOOD

38. THE LOCALS
Don the Beachcomber

39. DON THE BEACHCOMBER

42. What it once was…….

43. HAPPY MEMORIES OF WAIKIKI

44. LALANI- A HAWAIIAN VILLAGE

45. A TROPICAL MARKETPLACE

46. ….it can be again

47. International
Market
Place

48. We kept what you loved
and changed the rest

51. KALUAOKaU
THE QUEEN EMMA FOUNDATION WAIKIKI PROPERTIES
Market Considerations
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52. 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.

53. 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

54. 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

55. 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

56. 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

57. 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

58. 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

59. 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

60. 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

61. KALUAOKaUTHE QUEEN EMMA FOUNDATION WAIKIKI PROPERTIES
Property Profiles
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62. OUTRIGGER WAIKIKI HOTEL

63. MIRAMAR HOTEL AT WAIKIKI

64. OHANA EAST HOTEL

65. ABC STORE

66. QUEEN EMMA APARTMENTS

67. BEACHSIDE APARTMENTS

68. WAIKIKI REGENT

69. PERRY’S SMORGY

70. FOOD PANTRY

71. OHANA WEST HOTEL

72. HAWAIIAN PRINCE APARTMENTS

73. WHITE SANDS APARTMENTS

74. OUTRIGGER SURF- THE ORION???

75. HAWAIIAN KING APARTMENTS

76. WAIKIKI MARKET PLACE

77. HONOLULU PRINCE

78. THE BEACHCOMBER AT WAIKIKI HOTEL

79. WAIKIKI TRADE CENTER

80. CORAL REEF HOTEL

81. WATUMULL BUILDING

82. KALUAOKaU
THE QUEEN EMMA FOUNDATION WAIKIKI PROPERTIES
Planning Options
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83. DESTINATION RESORT COMPLEX
including Miramar Hotel

84. MIRAMAR HOTEL OPTION

85. DESTINATION RESORT COMPLEX
Coral Reef Hotel

86. CORAL REEF HOTEL

87. DESTINATION RESORT
Miramar and Coral Reef Option

88. EXPANDED DESTINATION RESORT
Includes, Coral Reef, Miramar, Ohana Surf, Waikiki
Marketplace and Ohana West

89. EXPANDED DESTINATION RESORT
Ohana Surf, Waikiki Marketplace and Ohana West

90. KALUAOKaU
THE QUEEN EMMA FOUNDATION WAIKIKI PROPERTIES
Strategy for the Future
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91.  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

92. 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

93. 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.

94. 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

95. 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

96. 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

97. 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

99. 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

100. urbanlabs
mahalo