Saturday Briefing

By Mel Kaneshige

Mel Kaneshige

Outrigger announced last week that it has been selected to manage the Outrigger Qingshui Bay Resort, Sanya, China, a new 500-plus room, five-star, full service luxury hotel to be built as part of Qingshui Bay Resort, an exciting new, multi-billion dollar mixed-use development being built on the island of Hainan in the People’s Republic of China. Located along 7.5 miles of prime beachfront property within Hainan Island’s Sanya Administrative Prefecture on the South China Sea, the Qingshui Bay Resort will feature six luxury hotels, a diverse range of residential apartments and villas, multiple championship golf courses, and a comprehensive mix of commercial, retail, and entertainment offerings.

This is a tremendous opportunity for Outrigger for a number of reasons. First, it gets us into China’s rapidly growing resort leisure market in China’s best known warm weather resort leisure location. Second, we have established a relationship with one of South China’s largest property developers with a potential for other management opportunities in the future. Third, this represents a strategic opportunity for Outrigger to build brand awareness by operating a flagship property in China’s premier resort destination.

The Qingshui Bay Resort is being developed by a joint venture between Morgan Stanley managed funds and Agile Property Holdings Limited, a Hong Kong listed property developer specializing in large-scale, high-end, design-oriented residential and resort developments.

The Outrigger Qingshui Bay Resort, which is expected to open in 2013, will be one of six hotels within the Qingshui Bay Resort and will include multiple food and beverage outlets, an exclusive beach club, extensive landscaping, a variety of specialized water features, and high-end retail.

Located just off the southern coast of the People’s Republic of China, Hainan is China’s second largest island. Over the years it has developed into one of Asia’s premier resort destinations. The island enjoys easy international access via Sanya Phoenix International Airport, servicing a growing number of domestic and international destinations, including Hong Kong, Seoul, and Moscow.

Because of its expansive beaches, natural beauty, and tropical setting, as well as its location along the same latitude as Hawaii, Hainan is sometimes referred to as the “Hawaii of China.” Like Hawaii, visitors can enjoy an array of water sports, including scuba diving, snorkeling, water skiing, and parasailing, as well as world-class golf and cultural activities. There are also wildlife preserves with exotic animals and birds in the island’s rainforests, as well as geothermal hot springs across the island.

In the two short years since we began our growth into Asia, we have acquired properties in Bali and Phuket, with discussions now underway for additional properties in Phuket and Koh Samui in Thailand. At the present time, we are also investigating other opportunities in Hua Hin, Krabi and Pattaya in Thailand, another location in Bali, and several locations in Vietnam.

In addition to these exciting new developments in Asia, we continue to explore other opportunities in Hawaii as well, as our roots remain deep in Hawaii and our commitment to the islands remains steadfast.