As Maui continues to recover from the impacts of devastating wildfires that tore through the island last month, hospitality providers in the popular Hawaiian tourism destination continue to play a key role in relief efforts — even as the disaster takes a toll on anticipated earnings.
In the immediate aftermath of the wildfires, which began on Aug. 8, relief efforts were focused squarely on getting the island’s residents and visitors out of harm’s way. Then came repairs to basic utilities and infrastructure, as many parts of the island were cut off from the rest, with hotels and other buildings relying on generators for emergency power.
Now, as the island rebuilds from the disaster, hospitality companies are reevaluating anticipated sales numbers to reflect the fires’ impact while continuing to provide essential relief.
Taking sales hits
Hilton Grand Vacations anticipates a decline in sales activity at its two Maui properties.
“We’re continuing to assess the impact of the wildfire on our business,” said Dan Mathewes, CFO of Hilton Grand Vacations, in a statement, noting that the company’s Kā’anapali Beach Club is not accepting guest reservations. “As a result, we’re anticipating a significant decline in contract sales activity at our Maui properties for the remainder of the year.”
Though activity at the company’s other Hawaii properties remains steady, the situation “remains fluid,” Mathewes said, which may lead to “additional disruptions across our broader Hawaii portfolio as we relocate and rebook our guests.”
Marriott Vacations Worldwide expects contract sales in the third quarter to be adversely impacted from $25 to $30 million.
The timeshare company operates four vacation ownership resorts and sales centers in West Maui. Together, the West Maui properties account for more than 10% of its annual contract sales.
Though Marriott Vacations Worldwide said physical damage to its resorts and sales centers was minimal, it has canceled all owner and exchange reservations through Sept. 10 and all transient rental and preview arrivals through the end of the month.
The company also noted that it intends to pursue relief available through insurance options, but that it’s still too soon to estimate the recovery. Fourth-quarter operating results will depend on the timeline for reopening and travel’s return to Maui.
Giving back
Hotels have been key to relief efforts since the week the Maui wildfires erupted, when the American Hotel & Lodging Association partnered with the Hawaii Hotel Alliance to coordinate help. The organizations connected evacuees and emergency response teams with hotels with available rooms. And the Maui Hotel & Lodging Association played a major role in working with emergency teams, hotels and airlines to get those in danger off the island.
Relief efforts are still ongoing, and hotels are still playing a crucial role. On Wednesday, Hilton announced $500,000 donated to support relief efforts.
More than 9,000 of the company’s sales and operational leaders recently raised $175,000 for the Hawaii Community Foundation’s Maui Strong Fund at a gathering in Las Vegas. That’s in addition to the money already committed by Hilton, totalling $325,000 since early August.
One Hilton hotel, the Grand Wailea Maui, a Waldorf Astoria Resort, was particularly useful to recovery efforts. The hotel partnered with World Central Kitchen to provide more than 600 daily meals to shelters across Maui, as well as donated an emergency kitchen for West Maui residents to cook their own meals. The hotel also provided accommodations for displaced team members, community members and relief workers. Additionally, Grand Wailea Maui served as the lead sponsor for the Wiwoʻole Maui Benefit Concert, which benefited the Maui Strong Fund.
Marriott Vacations Worldwide is focusing its relief efforts on its associates. The vacation ownership company shared that a “large percentage” of its nearly 1,700 associates on Maui sustained significant damage to, or loss of, their homes and belongings.
In response, the company is providing temporary housing, food, supplies and on-site counseling to staffers.
“Hawaii is a very special place for our Company and the tragic loss that the people of Maui have to endure as a result of the wildfires is difficult to see,” said John Geller, president and CEO of Marriott Vacations Worldwide, in a statement.
Meanwhile, Hilton Grand Vacations has activated a Team Member Relief Fund and is providing housing to dozens of staffers and their families, as well as first responders.
“We believe in the spirit of the people of Maui, and we’re committed to providing support to all those affected as they rebuild in the aftermath of these tragic events,” said Mark Wang, president and CEO of Hilton Grand Vacations. “Hawaii has always held a special place in my heart.”
