Message from the President Welcome to 2012! This year will be exciting, filled with opportunity and challenge as the market continues to improve amidst a climate of global uncertainty. Our team members have already started off 2012 with a bang at the Na Po’e Pa’ahana awards. At the awards, the Aqua family of companies and employees was honored an incredible fourteen times. Aqua has a history of success at the Na Po’e Pa’ahana awards, including our own Leticia Gamiao being named as the outstanding lodging employee of the year for the entire United States in 2010 (http://www.youtube.com/watch?v=MF64l0VnDXw). This year, Lynette Eastman was named the state’s manager of the year and she will be moving on to the American Hotel and Lodging national awards. On behalf of all of Aqua we would like to thank her and our other honorees: James Winston, Romeo Corrales, Adrian Ben Rafter Jennison, Chester Fabriga, Marlon Henobio, Harry President & CEO Matsushima, Michele Ching, Amy Chow, Rebecca Flores, Merilyn Tampon, Karlene Makalena, Kapena Cummings-Gardner, Fe Suyat and Sally Tobita. Oahu: The Modern Honolulu To complement our awesome team members, 2012 will also be a year of investment for Aqua. We have budgeted enhancements to our call center, web Aqua Aloha Surf Waikiki Aqua Bamboo Waikiki sites, home offices, brand standards, training, policies and procedures and more. Aqua Ilikai Hotel & Suites I’m particularly excited about our call center enhancements, as we are greatly Aqua Lotus Honolulu expanding our phone system’s capabilities and customization to reflect the various Aqua Palms Waikiki Aqua Queen Kapiolani brands, products and services that are part of the Aqua family. Aqua Waikiki Pearl Aqua Waikiki Wave In 2012 we will increase our support for the community as well. We are proud to be Best Western Coconut Waikiki supporting numerous events throughout Hawaii including the annual Visitor Industry Island Colony Hotel Charity Walk – which raises over $1,000,000 for charity – and the Hawaii Food Maile Sky Court Bank to which team members donated over $6,000 and almost 3,000 pounds of Pagoda Hotel Park Shore Waikiki food last year. Later this year we will have exciting news on the launch of an Aqua White Sands Hotel Foundation designed to infuse the art of giving and integrate environmental preservation into our guest experience, supporting the incredible ocean that makes Maui: Hotel Wailea Maui Hawaii unique. Internally, our employee stock ownership plan is in its fourth year Molokai: Aqua Hotel Molokai and has generated millions of dollars for our employees. We are hoping when the 2011 results come in, our valuation will continue to grow thanks to the hard work Lanai: Hotel Lanai and dedication of the team. Kauai: Kauai Beach Resort Finally, I’m looking forward to working with all of you in 2012. Whether hotel owner, wholesaler, travel partner, employee owner, friend, team member or some combination thereof, your ideas and feedback inspire us to continue doing more. End of Year Mahalo for your support! 2011 Looking back at 2011 Aqua headlines Aqua Hotels & Resorts introduces new “beach boutique” concept Known for carving out the boutique hotel niche in Hawaii several years ago, Aqua further differentiated the brand by introducing a “beach boutique” concept. As a popular sun, sand and surf destination, Aqua designed a bold new look for the guest amenities which started with the plush, custom beach towel, followed by the sand chair and more. Aqua Hotels & Resorts celebrates milestone with $10 special Hawaii’s only boutique hotel group celebrates 10 years of hospitality Aqua Hotels & Resorts (www.aquaresorts.com), a full-service Hawaii hotel management company founded in 2001 by Mike Paulin, is celebrating its 10th birthday on August 11, 2011. Through July 15, consumers can book their stay of 3 or more nights at 16 participating Aqua managed hotels and resorts on Oahu, Maui, Molokai and Kauai and pay just $10 for their first night with additional nights at our Best Available Rates. Aqua is 10! Consumers booking their stay at 16 participating Aqua managed hotels and resorts on Oahu, Maui, Molokai and Kauai receive 10% off Aqua’s Best Available Rates when presenting their photo at check-in. There is no minimum stay requirement. L-R Aqua Bamboo Waikiki and Mike Paulin Capische? captures national honor as “Most Romantic Restaurant” Hotel Wailea Maui announced that Capische? Restaurant, located at the resort, was recently voted one of the 50 “Most Romantic Restaurants” of 2011 by Open Table diners. Based on more than 7 million restaurant reviews over the last year, Capische? was one of two restaurants statewide chosen by people reviewing their dining experiences on Open Table, a leading provider of free online restaurant reservations. Michel’s at the Colony Surf on Oahu was the second Hawaii restaurant honored. Aqua Hotels appoints June Nozoe and Janice Ishihara to sales positions June Nozoe, Director of Sales & Marketing - Asia With more than 20 years of sales experience in Asia and the international market, Nozoe represents Aqua’s entire portfolio to existing partners and will create new relationships with Asia businesses in Japan, Korea and China. Janice Ishihara, Director of Sales – Kaua‘i Beach Resort As Director of Sales for the 350-room hotel, Ishihara brings an extensive background in resort sales and marketing to the property. She has a solid foundation within the industry and has a broad network base which brings another level of exposure and opportunity to the Kaua‘i Beach Resort. Aqua Hotels & Resorts named to manage The Lotus at Diamond Head Aqua assumed management of The Lotus at Diamond Head, effective July 18, 2011. The hotel was renamed Aqua Lotus Honolulu and has become part of the Aqua Boutique Collection. One of Waikiki’s first full-service boutique hotels, the Aqua Lotus Honolulu was previously marketed as the hip “W Honolulu”. The hotel remains stylish with beautifully appointed Asian inspired furnishings and a relaxed upscale ambiance. Pagoda Hotel becomes pet-friendly option for dog owners The landmark Honolulu hotel Pagoda Hotel with its one-of-a-kind design and unique appeal, now welcomes pet dogs. Page 2 … EOY 2011 + 2012 Contact: [email protected] Contac Sandi Yara [email protected] Looking back at 2011 Aqua headlines… continued Hotel Wailea Maui offers packages catering to active travelers Maui was ranked #4 Best Adventure Vacation by US News and World Report and Hotel Wailea Maui offered active travelers several packages and activities that is sure to get the adrenaline pumping including: 3 day Kiteboarding Package, Paddleboard Family Package and Maui Ocean Divas Best Western Coconut Waikiki Hotel receives a “plus” Visitor favorite Best Western Coconut Waikiki was ‘upgraded’ to a “BEST WESTERN PLUS” hotel. According to Best Western, “BEST WESTERN PLUS always offers that little something extra. From well appointed rooms to modern amenities, it’s thoughtfully designed to suit the needs of any business or leisure traveler. As of January 1st, the daily complimentary deluxe hot breakfast also includes new items - scrambled eggs, sausage and yogurt. Aqua implements temporary policy for guests affected by Hurricane Irene Aqua amends cancellation and early check-out policies - being as flexible as possible for guests who have booked rooms at Aqua and may be affected by Hurricane Irene. Modern Management Services, LLC is the new manager of The Modern Honolulu An affiliate of Aqua Hotels & Resorts, Modern Management Services, was named the new management company of this full-service luxury 353-room property. The Modern Honolulu hosts opening event of the first-annual Hawaii Food & Wine Festival: Streets of Asia: Morimoto and Friends. Chefs included Chai Chaowasaree, Chai's Island Bistro; Edward Kwon, LAB XXIV, Korea; Masaharu Morimoto, Morimoto Waikiki; Justin Quek, Sky on 57, Singapore; Douglas Rodriguez, Deseo, USA; Guy Rubino, Ame, Canada; Suvir Saran, Devi, New York City and Scott Toner, The Modern Honolulu Aqua Lotus Honolulu extends dog-friendly welcome to canine guests Aqua Lotus Honolulu invites guests to bring their pet dog along on their next vacation to Oahu and offers a warm reception to canine companions by providing tail wagging amenities and plenty of love. Brian “Kovy” Kovaloff and Karen Yonemoto join Pagoda Hotel team Kovaloff was named Hotel Manager of the 359-room Pagoda Hotel, located at 1525 Rycroft Street in central Honolulu. Karen Yonemoto is the new Sales Manager for the Pagoda and White Sands Hotels. Heidi Kalepa named Corporate Director of Human Resources Aqua Hotels & Resorts garnered three Magellan Awards from Travel Weekly, recognized as the national magazine of the travel industry. “Don’t Touch My Package” promotional site – Magellan Gold Award “Right Price, Right Now” advertising campaign – Magellan Silver Award Aqua Hotels & Resorts website – Magellan Silver Award Page 3 … EOY 2011 + 2012 Contact: [email protected] Contact:Contac Sandi Yara [email protected] Photo gallery of recent hotel additions Named after the beloved wife of Hawaii’s last reigning King, Queen Kapiolani Hotel is a recently upgraded hotel located one block to the beach and near the Honolulu Zoo, Kapiolani Park, Waikiki Shell and Waikiki Aquarium. Most upgraded rooms feature views of Diamond Head and/or the ocean. Hotel amenities include meeting and banquet facilities plus a restaurant. A sophisticated enclave located on the famed Gold Coast of Waikiki, the Aqua Lotus Honolulu, formerly W Honolulu, is a fusion of Asian inspired décor and warm Hawaiian hospitality. This hotel offers a peaceful retreat from the hustle and bustle of Waikiki with remarkable views of majestic Diamond Head and the ocean. Where innovative design meets barefoot luxury, The Modern Honolulu promises a refreshingly new Hawaii experience. Home to Iron Chef Morimoto's celebrated new restaurant, Morimoto Waikiki, the hotel's understated elegance has earned acclaim for exceptional service and high design during its opening year.