Post #577228 by Cammo on Tue, Feb 22, 2011 10:50 AM

The Wrench in the Machine, or What Went Wrong

Here’s what went wrong; *everything. *

Here’s what they did wrong; everything.

You folks think that I’ve been telling you that basically “Tiki Doesn’t Matter.” Or that the nature of business has changed and is watched so closely by accountants that Tiki Bars are unapproachable.

That isn't true. Corporate planners just think it’s true.

Because here’s the ironic part: the Hanalei did everything it could to attract corporate clients, based on feedback they’ve had from some companies who told them they didn’t have “big enough conference rooms” to hold a national, even a statewide meeting. They redid the whole hotel to look more acceptable to corporate travel departments. They remade the menu to cut costs to the clients. And the Hanalei spent huge bucks to BUILD more CONFERENCE ROOMS.

Then they didn't get much response. (Why should they?)

That’s right, the companies that had promised them they’d line up to book there suddenly evaporated. They didn’t call back too much. They didn’t return calls when the Hanalei phoned them to tell them how spiffy they look now and what big shiny conference rooms they have.

Because the Hanalei wasn’t following their own successful business plan, they were imitating some else’s.

They were pretending to be successful at booking corporate accounts; they were not actually booking them.

In other words, they got greedy.

We’re all living the shadow of these would-be corporate accounts. The hotel managers refuse to bend down to the little guy because they’re always busy combing their hair and polishing their shoes, getting ready for the BIG meeting with the head of Nissan, trying to get their yearly hotel account. "What did you want to talk about? Tiki what? Ummm, can you come back Thursday? No, Thursday of next month.”

If there is a golden rule of business, it is “If it works locally, it will probably work nationally.” If people are not flocking to the Hanalei from surrounding San Diego, if they are not coming back year after year, then they sure aren’t lining up to come there from Binghampton, New York either. It’s a rule. Likewise, if you do have a local hit, it can go national quicker than you can yell “TIKI!”

The same thing has been happening over at San Diego’s other landmark hotel, the Hotel Del Coronado. The ‘Hotel Del’ (built 1888) is known for its beachside tennis courts, the amazing lobby bar, and the giant live Christmas tree that filled the lobby each year. The hotel was bought by a series of corporations who recently decided to take out all the tennis courts, eliminate the lobby bar and you guessed it put in a FAKE TREE (!!!!) each Christmas. Then they put in a “Beach Village” that are the most expensive rooms in all of San Diego. The hotel went from being valued at 745 mil to it’s now asking price of about 595. There’s been a takeover in management and the debt is still growing. Ten years from now the Hotel Del may not exist. Locals hate the changes and don’t go there anymore. It’s too expensive. It ain’t charming at Christmas. Corporate types don’t see the point in going - its not a chain and the conference rooms are fairly small.

Here’s the surprise; the Hanalei is actually pretty popular locally. Not a big success, but it’s sort of popular. And not with big corporate types. Instead, local businesses and clubs love the place - because of the Tikis. I’ve been to a lot of functions there, and the general feeling is that it’s a great, Polynesian-styled hotel that has pretty good food and a GREAT sushi bar. It isn’t booked solid year-round like the Catamaran Hotel (lush Tiki ambiance) or Humphrey’s Half Moon (exactly like going to Hawaii, and they book top music acts all summer, it’s the coolest place in San Diego, they’re BUSY ALL THE TIME and know exactly what they’re doing) but it does OK. In spite of the boring changes.

What sells the Hanalei, Humphrey’s and the Catamaran is that they’re Tiki. The Catamaran has Luaus all summer. It works. It hops.

There’s no reason to tear these places down, just redo the plumbing and change the lightbulbs once in a while. Update using good architects who know their stuff. They’ll do just fine, don’t worry. Keep the rooms reasonably priced. Put in a sushi bar. Grill some pig. Put on a Luau. It works. Explain it slowly to people. We know it works.

And - you can still do more business at a Playboy Club or a really great bar than at a Rotary Meeting. The salesmen know how to sell. Leave them alone. Forget the receipts.

Why beige? Beige looks like gold on the original planning drawings, that’s why. It’s the closest their budget can get to gold-leafing the walls like they do now in Hong Kong hotels. The look is supposed to be “prosperous” and “successful,” not boring. Businesslike, up and coming, got lots of moolah, living large business, not I NEED A BUCK gimme some business lets meet at the donut shop.

Why did they dismantle the Hanalei’s dining room? Well, for one, the waterfall was just plain installed on the wrong wall. It should have been behind the diners, not in front, because what everybody wants to do is look out onto the pool on a nice sunshiney morning at breakfast, lunch and dinner. The waterfall obscured the pool; it closed off the whole outside wall. The dining room is actually pretty nice to sit around in now, giant fold-back doors, fresh air, nice view, more room, not claustrophobic, lots more people can join the party. Too bad they didn’t move the waterfall to the back wall, but what can ya do?

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