The Outrigger Story

Outrigger Waikiki on the Beach, 2012

I discovered an island

™

. I discovered Outrigger.

A people steeped in tradition. Nurtured by the land. With gentle

respect for the beauty that frames every day. I wasn’t the ﬁrst to

step onto its soil. But I feel I’ve found this island.

At the heart of Outrigger Hotels & Resorts lies the spirit of

discovery. For more than 60 years, we have shared a warm island

welcome with our guests: today we strive to also bring them

meaningful experiences; ones that will touch their hearts and

create lifetime memories.

Welcome to Outrigger.

The Kelley Family

The Islander, built 1947

- 4 -

The Outrigger Story

In 2012, Outrigger Enterprises Group celebrates 65 years of hospitality. What is today a top multi-branded, multi-faceted

hotel management company in the Asia-Paciﬁc region began as the dream of Roy C. Kelley, who pioneered the concept of

family-style hotel rooms in Waikiki. Together with his wife, Estelle, he helped bring the dream of a vacation in paradise within

the reach of the everyday traveler. In so doing, he forever changed the face of Hawaii’s visitor industry.

The Story Begins

Roy Kelley was born in Redlands, California, in 1905,

the son of a small independent mason and cement worker.

Working nights at the Los Angeles bus depot to pay

his way through the University of Southern California’s

School of Architecture, Mr. Kelley eventually graduated

at the top of his class and went to work for the Doheney

family of Los Angeles, designing tract houses in San Juan

Capistrano, just south of Los Angeles.

Roy and Estelle Kelley married in 1929, a time when

jobs were difﬁcult to ﬁnd. When the job in San Juan

Capistrano ended suddenly, they set out overseas in search

of opportunity. Their ship landed in the Territory of

Hawaii and Roy immediately accepted a position with

Honolulu architect C.W. Dickey. For the next ten years,

Roy designed some of Honolulu’s landmark buildings,

including the Immigration Building on Ala Moana

Boulevard, Montegue Hall at Punahou School, the old

Halekulani Hotel, and the former Waikiki Theater.

Entrepreneurs at heart, in 1932 the Kelleys went into

part-time business for themselves by constructing a

six-room apartment building in Waikiki. Other apartment

buildings soon followed. During this time, however,

the only hotels available to visitors in Waikiki were the

Royal Hawaiian, the Halekulani and the Moana –

all catering to the wealthy and well to do. So, in 1947,

Roy Kelley built his ﬁrst hotel – the 50-room Islander

Hotel on Seaside Avenue. This ﬁve-story walkup was the

ﬁrst new hotel to be built in Waikiki in over 20 years

and the ﬁrst to focus on the middle-income family

traveler. Also in the late ‘40s, the Kelleys built the Ala Wai

Terrace Hotel-Apartments, featuring six garden-units on

the banks of the Ala Wai and purchased the Edgewater

Beach Apartments.

Bringing novelty and luxury to Waikiki, the ocean wing of

the Edgewater Hotel was erected in 1950. At six stories, it

was considered a “high-rise” and included an automatic

elevator and a swimming pool – both regarded as luxuries

at the time. The second tower of the Edgewater was built

two years later.

With the completion of the beachfront Reef Hotel in 1955

and the Reef Towers Hotel in 1959, the shape of Hawaii’s

visitor industry was completely changed. Suddenly Hawaii

was affordable. Thanks to Mr. Kelley’s pioneering efforts,

a vacation in paradise was now within the reach of the

average traveler.

The Edgewater, built 1950

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The 1960s – The Outrigger

Name is Born

The greatest chapter of this story, however, was yet to be

written. In late 1963, the lease on the oceanfront land

occupied by the Outrigger Canoe Club was due to expire

and the Queen Emma Estate, which owned the beachfront

property, was negotiating with Sheraton hotels for a

long-term lease. When negotiations unraveled over a price

dispute, the Queen Emma representative walked out of the

room, called Roy Kelley, and asked him if he was interested

in leasing the site. Without a moment’s hesitation, he said

“yes.” The Outrigger Waikiki was built in 1967, becoming

the ﬁrst hotel to bear the Outrigger name.

The 1970s – The Pace of

Construction Increases

The 1970s saw a great expansion of the Kelley hotel

chain with ﬁve hotels completed in quick succession:

the Outrigger Waikiki Surf in 1970; the Outrigger East

in 1972; and the Outrigger West, Outrigger Surf and

Outrigger Village hotels in 1973. To ﬁnance these projects,

three hotels – the Reef, Reef Towers and Edgewater hotels

– were sold to the Cinerama movie company in 1969.

However, during the recession of the 1970s the hotel

industry suffered; the ﬁnancial ailments for Cinerama’s

hotel operations compounded and allowed Roy Kelley to

re-purchase the hotels from Cinerama in 1982 and

re-integrate them back into the Outrigger chain.

Roy and Estelle’s eldest child, Richard, pursued other

impressive goals before deciding that the family hotel

business was his true calling. Graduating from Stanford

with straight A’s, Richard Kelley received a medical degree

from Harvard Medical School in 1962 and completed

his training at Honolulu’s Queens Medical Center. A

successful practicing physician, he switched gears and opted

to join his parents in running the family business and

became the company’s president and CEO in 1971.

Outrigger Waikiki on the Beach

OHANA Waikiki West formerly Outrigger West

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The 1990s - A Decade of Change

Outrigger’s dreams of expansion to Hawaii’s neighbor

islands became a reality in the ‘90s, when growth

burgeoned in several ways. First, the company assumed

management of the former Hilton Kauai Resort and aptly

renamed it the Outrigger Kauai Beach Resort. Then,

Outrigger purchased The Royal Waikoloan on Hawaii

Island, which it had been managing for several years,

renaming it the Outrigger Waikoloa Resort and investing

heavily in renovating the hotel. Additionally, the company

acquired the Aston Wailea Resort on Maui, renaming it

the Outrigger Wailea Resort and undertaking signiﬁcant

renovations to the property.

Continuing its journey to Hawaii’s neighbor islands,

Outrigger formed a condominium management team in

1994 and assumed management of properties on Kauai

and Maui. Over the years, the condominium inventory

has changed with many of the earliest and less desirable

properties no longer a part of the Outrigger portfolio.

Today, Outrigger’s Condominium Collection is a unique

and celebrated product line within the Outrigger Hotels &

Resorts brand.

The 1980s - The Outrigger

Chain Unites

Prior to 1984, the company was composed of three

separate chains: the Outrigger Hotels, the Reef Hotels

and the Waikiki Hotels. Consolidating in the ‘80s,

the company became Outrigger Hotels Hawaii and

most of the properties took on the Outrigger name.

A number of major hotel purchases also were made

in the ‘80s, and by 1986, the acquisition of two more

properties pushed the chain’s room-count over

the 7,000 mark, making Outrigger Hotels Hawaii at

the time the largest chain in the State of Hawaii.

1989 marked a year of transformation for the company.

Outrigger sold six of its Waikiki hotels to outside

investors but maintained long-term management

contracts in each case. The capital raised from these

sales was employed to fund renovation projects and

expansion efforts beyond Waikiki.

Also in 1989, the baton of day-to-day operations was

passed from the second generation of Kelley family

members to the third, when Richard Kelley’s son-in-law,

David Carey, assumed responsibilities as president and

COO of Outrigger Hotels Hawaii. Dr. Richard Kelley’s

role then shifted to CEO and Chairman of the Board.

Outrigger also took on its ﬁrst venture outside of Waikiki

in 1989 when it added The Royal Waikoloan Hotel,

located on Hawaii, the Big Island, to its inventory.

The ‘80s closed on another high note for the company

when Roy and Estelle Kelley were inducted into the

American Society of Travel Agents’ Hall of Fame.

One of the highest honors in the travel industry,

the induction recognized their central and signiﬁcant

role in the development of tourism in Hawaii.

Outrigger at Lae nani

Roy and Estelle Kelley

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Positioned in some of the most desirable locations

in Hawaii, Outrigger’s Condominium Collection is

comprised of 14 deluxe resort condominium properties

in both well-known resort destinations, as well as at some

truly unique and “hidden gem” locations throughout

Kauai, Maui, Hawaii Island and Oahu. It was also during

the ‘90s that Outrigger made its ﬁrst foray outside of the

United States with the opening of the Outrigger Marshall

Islands Resort in 1996. This marked the beginning of

an impressive expansion program to take the Outrigger

brand throughout the Paciﬁc area. Since that ﬁrst step,

the company has operated properties in Australia,

New Zealand, Palau, Fiji, Tahiti and Guam.

In 1998, Outrigger formed a joint venture with a resort

group in Queensland, Australia, to market and provide

worldwide sales and reservations services for properties in

Australia. Two years later, Outrigger dissolved this initial

partnership and established its own ofﬁces in Australia.

Over the next decade, Outrigger grew its portfolio in

Australia to include over a dozen resorts in Australia and

three in New Zealand. In 2007, however, Outrigger sold

its Australia and New Zealand assets to a publicly-held

Australian investment ﬁrm, with plans to reinvest the

funds generated from the sale on further development

in both Australia and New Zealand, as well as other

markets throughout the Asia-Paciﬁc region, a goal it has

successfully attained and continues to pursue.

Outrigger’s plans to grow geographically, as well as

the company’s entry into the resort condominium market,

prompted the company to change its operating name in

1995 from Outrigger Hotels Hawaii to Outrigger Hotels

& Resorts. And in 1999, the company spun off 15 of

its moderate priced hotels in Waikiki to launch a new

hotel brand called OHANA Hotels & Resorts to provide

enhanced clarity between its selection of deluxe,

full-service beachfront resorts in Hawaii and the Paciﬁc

and its moderate-priced off-beach properties on Oahu.

Today, four Outrigger hotels carry the OHANA brand

name, three in Waikiki and one near the Honolulu

International Airport, all conveniently located

near popular visitor attractions and offering quality

accommodations at mid-range pricing.

Sadly, the decade closed on a somber note for the family-

owned company as Outrigger saw the passing of founders

Roy and Estelle Kelley in close succession of each other.

Roy Kelley passed away on March 6, 1997, at the age of 91,

and Estelle followed a year later on March 10, 1998,

also at the age of 91.

Roy Kelley

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2000 and Beyond

The new millennium has brought further growth for Outrigger, both in Hawaii and into the expanded Asia-Paciﬁc region. In its

continuing efforts to grow and diversify the company, in 2002, Outrigger entered the rapidly expanding timeshare industry by signing

a strategic marketing and development alliance with Wyndham Vacation Ownership, the world’s largest vacation ownership company

and today provides on-site management services at ﬁve Wyndham Vacation Ownership properties in Hawaii.

Also in 2002, the Honolulu City Council approved

Outrigger’s plans to proceed with the Waikiki Beach

Walk project, a 7.9-acre redevelopment of the

area bordered by Kalakaua Avenue, Lewers Street,

Kalia Road, Beachwalk and Saratoga Road.

The ofﬁcial groundbreaking for Waikiki Beach Walk took

place on April 1, 2005. This included the demolition

of several legacy properties – the OHANA Edgewater,

OHANA Coral Seas, OHANA Royal Islander and

OHANA Reef Lanais hotels, as well as the complete

overhaul and repositioning of several other hotels.

Just 18 months later, on December 18, 2006, the brand

new Embassy Suites-Waikiki Beach Walk (formerly the

OHANA Waikiki Tower and OHANA Waikiki Village

hotels) opened its doors. The new Wyndham Vacation

Ownership (formerly the OHANA Reef Towers) had

opened one month earlier. In quick succession over

the next few months, six restaurants and over 40 new

shops and boutiques opened, bringing a rejuvenated

sense of excitement and renewed life into the area.

Outrigger’s Waikiki Beach Walk, to date the largest

redevelopment in the history of Waikiki, has been

an unmitigated success and catalyst for further

improvements in the area. The $535 million, 1.5 million

square foot retail, dining, entertainment, and hotel

development has transformed nearly 8 acres within

Waikiki into a vibrant pedestrian-friendly gathering

place that attracts both visitors and locals alike.

In January 2009, Outrigger Reef on the Beach ﬁnished

a $110 million transformation that is now the landmark

anchor to Waikiki Beach Walk. The new Outrigger Reef

is a stunning new oceanfront haven of elegance, comfort,

gracious hospitality, and unparalleled commitment to

Hawaiian culture. As one of the state’s foremost

supporters of Hawaiian culture, Outrigger Reef on

the Beach highlights the remarkable achievements of

Hawaii’s courageous ocean voyagers and honors

the deep relationship between Hawaii’s people and

the sea. The hotel’s stunning cultural assets were

honored by the Hawaii Tourism Authority’s

prestigious Keep It Hawaii Award.

Outrigger Reef on the Beach

Waikiki Beach Walk

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Many Brands, One ‘Ohana

In January 2003, before the construction of Waikiki Beach

Walk began, Outrigger afﬁliated two of its neighbor island

properties with global giant, Marriott International, to

take advantage of its worldwide sales organization and

17 million members of the Marriott Rewards

program.

The properties, formerly known as the Outrigger

Waikoloa Beach and the Outrigger Wailea Resort,

were renamed the Waikoloa Beach Marriott and Wailea

Marriott hotels. Several years later, taking advantage of an

opportunistic hotel investment market, both properties

were sold with proceeds going towards Outrigger’s multi-

million dollar Waikiki Beach Walk redevelopment.

Outrigger’s success in managing the two Marriott

properties, however, opened up a new chapter in hotel

operations for the company – managing hotels under

independent brands. Outrigger today is no longer just

a single-brand hospitality company. Rather, it currently

offers and operates a wide array of accommodation

choices in Hawaii and the Asia-Paciﬁc area, meeting

the needs and desires of all vacationers. The nationally

branded and independent hotels currently operated

by Outrigger include Embassy Suites-Waikiki Beach

Walk; Courtyard by Marriott-Waikiki Beach; Holiday

Inn Waikiki Beachcomber Resort; Best Western

The Plaza Hotel, and The Kapalua Villas in the exclusive

Kapalua Resort on Maui. An afﬁliate company called

Ala Moana Management Services (ALMMS) began

operating the venerable Ala Moana Hotel in 2007.

‘Ohana in Hawaiian

means family”

Embassy Suites – Waikiki Beach Walk

Outrigger on the Lagoon Fiji

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Asia-Paciﬁc - The Future For Outrigger

With the early success of Outrigger’s strategic expansion

plans to other Paciﬁc destinations, the new decade

saw the company embark on an aggressive and expanded

development plan to take the company throughout

Asia in the new millennium. In 2006, the company’s

Asia strategic plan was put into play, the result being

six management contracts signed for projects now

open or currently under development, including

Outrigger Clearwater Bay Resort, Sanya on Hainan Island,

China; Outrigger Koh Samui Resort & Spa, Thailand; Phi

Phi Island Village Beach Resort & Spa, Thailand; O-CE-N

Bali by Outrigger and Outrigger Panorama Resort & Spa

Bali, Indonesia; Outrigger Laguna Phuket Resort & Villas,

Thailand and Outrigger Vinh Hoi Resort & Spa, Vietnam.

With Outrigger quickly building a presence in Asia,

the company established an Asia-Paciﬁc regional ofﬁce

in Phuket, Thailand in 2008 with oversight of all

Outrigger properties in Asia, Fiji, and Australia.

Continued expansion within the area includes

exploring locales such as Pattaya, Krabi, and Hua

Hin in Thailand, China, Malaysia, South Korea

and Okinawa, Japan, with a number of other

destinations targeted for future consideration.

In December 2007, Outrigger re-entered the Australian

market by acquiring the management rights for

the well known Twin Towns Resort on the border of

New South Wales and Queensland. Within a few years,

Outrigger’s Australia portfolio has grown to four,

with the addition of the Boathouse Apartments by

Outrigger in Airlie Beach, Outrigger Little Hastings

Street Resort & Spa, Noosa, and Outrigger Surfers

Paradise in January 2012. The Outrigger brand ﬁts very

well with the Australian lifestyle and further expansion

is anticipated within Australia and New Zealand.

In 2011, continuing the evolution of the company’s

leadership, Dr. Richard Kelley stepped aside

as Chairman in favor of his son, Charles Roy

“Chuck” Kelley, M.D., with Dr. Richard Kelley

assuming the role of Chairman Emeritus.

Boathouse Apartments by Outrigger, Airlie Beach Outrigger Little Hastings Street Resort & Spa, Noosa

Phi Phi Island Village Beach Resort & Spa

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Outrigger Today

With 2012 marking 65 years of hospitality experience

for the company, Outrigger Enterprises Group today

is one of the largest and fastest growing privately-held

leisure lodging and hospitality companies in the Asia-

Paciﬁc and Oceania regions and continues to expand

its presence throughout the area. Still a family-owned

company, Outrigger runs a highly-successful, multi-

branded line of hotels, condominiums and vacation

resort properties, including Outrigger

Hotels & Resorts,

OHANA

Hotels & Resorts, Outrigger Condominium

Collection

, Embassy Suites

, Best Western

, Courtyard

by Marriott, and Wyndham Vacation Ownership

Currently, Outrigger operates and/or has under

development 46 properties with more than 11,200 rooms

located in Hawaii, Australia, Guam, Fiji, Bali, Thailand,

Vietnam and China. Outrigger Enterprises Group also

operates and develops hotel properties and hospitality-

related retail and real estate opportunities for partners

in Hawaii, Asia, the Paciﬁc and the mainland USA.

According to David Carey, Outrigger’s president

and CEO, “Our company’s founders, Roy and

Estelle Kelley, helped the world see what a beautiful

and romantic destination Waikiki was, and visitors

from around the world today still come to Hawaii to

experience that. It is with great pride, however, that we

have expanded our breadth of properties to include

other incredible locations for travelers to enjoy.

“As a family-owned company with more than six

decades of hospitality experience, we have solid roots

that keep us grounded as we continue to grow. We look

forward to many more years of success and sharing our

hospitality with guests around the globe,” Carey said.

For on-line information, log on at

www.outrigger.com

www.outrigger.com.au

Outrigger Surfers Paradise Outrigger Twin Towns Resort, Coolangatta

O-CE-N Bali by OutriggerOutrigger Laguna Phuket Resort & Villas

AUSTRALIA • HAWAII • FIJI • BALI • THAILAND • GUAM