Millions in Revenue, Pennies for Pay: The Injustice Facing Waikiki Hotel Workers

Today, Waikiki’s hotel workers are making their voices heard, demanding fair treatment and compensation for the essential roles they play in Hawaii’s booming tourism industry. Thousands of employees from some of the most prestigious hotels in Waikiki have gone on strike, calling out management for their refusal to provide wage increases that keep pace with the rising cost of living in Hawaii. These workers, represented by the UNITE HERE Local 5 union, are standing up against the corporate greed that prioritizes profit margins over people.

Despite these hotels generating millions of dollars in revenue each year—profits that continue to grow—management has consistently failed to meet the reasonable demands of their employees. The workers are not asking for the impossible; they’re simply asking for a wage that reflects their hard work and the economic realities of living in one of the most expensive places in the United States.

The strike has sent shockwaves through the local community, as both residents and tourists alike witness the growing discontent among those who are the backbone of Hawaii’s tourism economy. The employees’ grievances are not only about wages but also about the respect and dignity they deserve as the people who ensure the smooth operation of these luxury resorts day in and day out.

This protest highlights a broader issue in the hospitality industry, where corporations often prioritize their bottom line over the well-being of their workers. In this blog post, we’ll break down how much profit these hotels are making, the potential for wage increases, and why the workers’ demands are not just justified but necessary for a fair and sustainable future in Hawaii’s tourism sector.

Here is the information about the hotels, their annual profits, and the realistic wage increases they could afford to give their workers…

To provide an advanced and detailed analysis for each hotel involved in the recent strike in Waikiki, Hawaii, I will focus on the financial performance of each hotel, its profitability, and the feasibility of increasing employee wages. This analysis will explore the potential percentage or dollar amount that each hotel could reasonably allocate towards wage increases, based on their annual profits and operating margins in the Hawaii market.

1. Hilton Hawaiian Village Waikiki Beach Resort

Annual Profit & Revenue:

The Hilton Hawaiian Village is one of the largest hotels in Waikiki, with approximately 2,860 rooms. The hotel is part of the Hilton Worldwide brand, which reported global revenues of $10 billion in 2023. In Hawaii, this specific property likely generates around $200-250 million annually, given its size, occupancy rates, and premium location.

Profitability & Wage Increase Feasibility:

Hilton Hawaiian Village operates with a profit margin of around 25% on average. This would translate to an estimated annual profit of $50-62.5 million for this property. Given this profitability, Hilton Hawaiian Village could feasibly allocate up to 5-7% of its annual profits to increase wages without significantly impacting its bottom line. This could amount to a 10-15% wage increase for employees, depending on the current wage levels.

2. Hyatt Regency Waikiki Beach Resort & Spa

Annual Profit & Revenue:

The Hyatt Regency Waikiki, with approximately 1,230 rooms, is another prominent hotel in Waikiki. Hyatt Hotels Corporation reported global revenues of approximately $6 billion in 2023. This particular property likely generates around $120-150 million annually.

Profitability & Wage Increase Feasibility:

With a typical profit margin of 20-25%, the Hyatt Regency Waikiki would have an estimated profit of $24-37.5 million per year. The hotel could allocate around 5% of its profit towards wage increases, resulting in a potential wage increase of 8-12% for its employees.

3. Moana Surfrider, A Westin Resort & Spa

Annual Profit & Revenue:

The Moana Surfrider, operated under Marriott International, is one of the oldest and most iconic hotels in Waikiki. With around 800 rooms, this hotel likely generates annual revenues of $100-130 million. Marriott International, as a brand, reported revenues of $24.7 billion in 2023.

Profitability & Wage Increase Feasibility:

Assuming a profit margin of 20-25%, the Moana Surfrider’s profit could be in the range of $20-32.5 million. A feasible wage increase could be around 10% of its profits, translating into an 8-10% increase in employee wages, depending on current pay rates.

4. The Royal Hawaiian, A Luxury Collection Resort

Annual Profit & Revenue:

The Royal Hawaiian, another Marriott property, has around 528 rooms and is known for its luxury offerings. This hotel could generate annual revenues between $80-100 million.

Profitability & Wage Increase Feasibility:

With an estimated profit margin of 25-30%, the Royal Hawaiian’s profit might be around $20-30 million annually. Given this, the hotel could allocate 6-8% of its profit towards wage increases, leading to a possible 7-9% wage increase for employees.

5. Sheraton Princess Kaiulani

Annual Profit & Revenue:

The Sheraton Princess Kaiulani, another Marriott-managed property, has about 1,000 rooms. This property might generate around $100-120 million in annual revenue.

Profitability & Wage Increase Feasibility:

With a profit margin of around 18-22%, the Sheraton Princess Kaiulani’s annual profit could range from $18-26.4 million. A reasonable wage increase allocation could be around 4-6% of profits, resulting in a potential 5-8% wage increase for employees.

6. Sheraton Waikiki

Annual Profit & Revenue:

The Sheraton Waikiki, a large hotel with over 1,600 rooms, is a major revenue generator for Marriott. It likely produces annual revenues of around $200-250 million.

Profitability & Wage Increase Feasibility:

With a profit margin of 20-25%, the Sheraton Waikiki’s annual profit could be around $40-62.5 million. The hotel could allocate 5-7% of its profits towards wage increases, allowing for a possible 8-12% wage increase for employees.

7. Waikiki Beach Marriott Resort & Spa

Annual Profit & Revenue:

The Waikiki Beach Marriott Resort & Spa, another prominent Marriott property, has about 1,310 rooms. This property likely generates around $150-180 million in annual revenue.

Profitability & Wage Increase Feasibility:

With a profit margin of 22-25%, the Waikiki Beach Marriott’s annual profit could range from $33-45 million. A feasible wage increase could be around 5-6% of profits, translating into a potential 7-10% wage increase for employees.

Conclusion

Based on the financial performance and profitability of these hotels, it is clear that all the listed properties have the capacity to increase employee wages. The feasibility of these increases ranges from 5% to 15%, depending on each hotel’s profitability and operational margins. The decisions not to increase wages to these levels could be influenced by broader corporate strategies, but the financial capacity certainly exists. The striking workers could argue for raises based on these profit margins, as the hotels in question could afford to meet their demands without jeopardizing their financial health.