LAIE, Hawaii — A $30 million, 200-room hotel near the Polynesian Cultural Center is being developed by a property management company affiliated with The Church of Jesus Christ of Latter-day Saints.
The hotel would replace the 48-room Laie Inn near the Polynesian Cultural Center, said Eric Marler, executive vice president and chief financial officer of Hawaii Reserves Inc., which plans to start construction late next year.
However, though LDS Church officials did not contest the details of the plans released through Hawaii Reserve, church spokesman Dale Bills stressed Thursday that the project is "pending final approvals."
Bills added that the planned project was intended as an "upgrade and expansion of existing facilities," rather than a brand new facility.
The hotel would be the first of its size along Oahu's Windward coast, and the first hotel on the state's main island since the Kalia Tower at the Hilton Hawaiian Village was finished in 2001. The JW Marriott Ihilani Resort Spa & Golf Club at Ko Olina was completed in 1993.
Completion of the initial phase of 130 rooms is planned for early 2007. The eight-acre property would feature four separate three-story buildings, a banquet facility, a restaurant, swimming pools and a small North Shore visitor orientation center. An additional 70 rooms would be added in the next two years if the initial phase goes well.
The Laie Inn would remain open until construction starts.
Although local hotel companies have said time-shares and condominiums are more profitable in today's market, Marler said, "the occupancy numbers have become much stronger in the recent months here on Oahu, and we feel that for the mid-market type product that we're talking about that there will be adequate demand to support our investment."
Hawaii Reserves, which is affiliated with the LDS Church, generally doesn't partner with outside investors and plans to finance the hotel itself, Marler said.
"We feel that the North Shore has a lot to offer visitors as an alternative, perhaps, or in addition to their experience at Waikiki," Marler said. "A family might want to spend some time in Waikiki and then might also want to come out and have a multi-day experience on the North Shore."
The hotel's rates would be moderate, Marler said.
The company plans to market to tourists as well as officials meeting at nearby Brigham Young University-Hawaii, parents of students, athletic teams and participants in the university's continuing education programs.
The hotel also would be promoted along with the church-owned Polynesian Cultural Center.
Marler said he does not expect the new hotel to compete with the nearby Turtle Bay Resort, which attracts golfers and business travelers. He said he already has discussed his company's plans with Turtle Bay executives.
The LDS Church, through its real estate arm Property Reserve Inc., also owns the Inn at Temple Square in downtown Salt Lake City. Currently, the church has no plans to build other hotels, according to Dale Bills, church spokesman.
Contributing: Jenifer K. Nii