Northstar

www.travelweekly-asia.com | 15 Bitsy Kelley: "We work hard at succession." HOSPITALITY investing for the future generations of the family – what we do today is all about tomorrow. We can take a long- term view instead of having to make short-term decisions based on every quarter." Bitsy, who is Roy's granddaughter, said it was also critical to have an executive team of professionals who are empowered to execute on the business. Asked if the family always has the last say, she said, "On the overall strategic position, yes. Our strategic expansion into the Pacific, South- east Asia and Indian Ocean – we took that to the family and got their agreement." Bitsy's father, Dr. Richard Kelley, went to Harvard medical school but returned to Hawaii in 1962. "All through the 60s, I remember he worked as a doctor Monday to Friday and weekends at the hotel." She remembers working hard in the hotels, with her three sisters and brother. "We all started in housekeeping, folding towels; we washed dishes in the restaurant; we filed – the amount of filing was astronomical in those days. I have climbed through air conditioning ducts. I have scraped carpeting off hallway floors. I have scrubbed toilets. We did it all. And we loved it. It wasn't a chore, at all. We liked helping out at the hotels. "I still don't see it as work." Her father took over the reins from her grandfather in the early 70s and while today he is technically retired, he remains Chairman Emeritus and writes a weekly newsletter. Bitsy's brother, Dr. Chuck Kelley, is chairman of the board. Bitsy said Outrigger's vision is to be the "'premier beachfront resort brand in the world". It wants to be in iconic beach destinations – currently it has 40 properties. "If you stay with us in Hawaii, you know you are in Hawaii. We have developed a set of values that's true to the Hawaiian culture and that philosophy applies to any of the locations we are in. When you come from an island destination, you appreciate its uniqueness and you want to be intimate and tight with the community. That's what makes us different." With its global expansion, Outrigger has had to adapt to different customer needs. "In the end, why does anyone want to travel? And Bitsy answers her own question. "They want an authentic experience in that culture and that's our strength." If there is one book that planted the seed of travel in me, it was "Tales of the South Pacific" by James Michener and from an early age, I dreamt of travelling to the islands in the Pacific Ocean, didn't matter which island as long as they were in the blue waters of that particular ocean. Thus, when I first set foot on Hawaii in the '80s, I felt like I had arrived as a traveller. And while I didn't quite get there by outrigger canoe, I had heard of the hotel group, Outrigger, and I wanted to check out their first hotel, Outrigger Waikiki. It was only later that I learnt the story of this hotel group – while Outrigger Waikiki, the first hotel to carry the Outrigger name, opened in 1967, the family-owned company's roots go back even further and deeper into Hawaiian history. Roy and Estelle Kelley, the founders, opened their first hotel in 1947, but the seeds for Outrigger were first planted with their marriage in 1929 and arrival in Hawaii four months later. Roy, an architect, designed some of Honolulu's landmark buildings including the old Halekulani Hotel. He then thought up the concept of family-style hotel rooms to cater to American travellers and in 1947, built his first hotel, the 50-room Islander Hotel, the first new hotel to be built in Waikiki in over 20 years. When jumbo jets arrived, he saw the future and knew he had to build for travellers other than Americans. Fast forward to now and its outrigger canoes have certainly travelled far and wide – the company, called Outrigger Enterprises Group, has grown into one of the largest privately held hotel companies in the Pacific in the last two decades. It operates and/or has under development 40 properties with approximately 9,000 rooms located in Hawaii; Guam; Fiji; Thailand; Mauritius; Maldives; Vietnam; and Hainan Island, China. The company also FAMILY VALUES DRIVE OUTRIGGER'S JOURNEY ACROSS THE OCEANS operates and develops hotel properties and hospitality-related retail and real estate opportunities for partners in Hawaii, the Pacific and Asia. Consider that the hotel company didn't venture outside of Waikiki until 1989 when it added The Royal Waikoloan Hotel on Hawaii Island to its inventory, and you could say the pace of expansion has been nothing short of blistering. The impetus for foreign expansion came in the wake of Hurricane Iniki in 1992, which missed Waikiki but left 80% of homes on Kauai damaged. David Carey, president and CEO of Outrigger Enterprises, who married Roy Kelley's granddaughter Kathy, said, "I still remember standing in the ballroom with our employees… thinking, 'Oh, my God, I'm out of business." The company knew it needed to diversify and the expansion began in 1996 with the Outrigger Marshall Islands Resort. What I find most interesting is how a fifth-generation family enterprise has been able to grow as successfully as it has. After all, it is said, that family wealth rarely lasts beyond three generations. Bitsy Kelley (Kathy's sister), vice president, corporate communications of Outrigger Enterprises Group, said, "We work hard at the succession. Some people say most family businesses don't succeed after the second generation – the new generations are disconnected from the origins and true values and as each member gets married, a spouse brings in a new value. "If you don't communicate, it will fall apart. We work very hard at the communication – we meet four times a year with the new generations and shareholders, educating and informing them. It's not always easy, but the key is making sure they understand so we get everyone's buy-in. "Succession doesn't happen by default. We spend a lot of time By Yeoh Siew Hoon

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