Property Tax Assessment Appeals Cautions

Aloha Kakou:

With the recent mailings by Maui County of your property tax assessment, Danny Agsaolong, the Maui County director of finance wrote a letter to the Maui News regarding appeals. Following is his quote regarding an appeal based on leashold versus fee simple:

"Assessments for leasehold apartments are another point of confusion. Leasehold property is assessed at its base, fee simple value. In most cases, a property owners' leasehold agreement obligates them - and not the landlord - to pay the property taxes. While this comes as a shock to many leasehold apartment owners, this is the way the law is written and the way that it must be enforced. Appeals based on the challenge that a leasehold property is not the same and should not be assessed at fee simple rates may not succeed."

You can see his entire letter here:

http://mauinews.com/page/content.detail/id/547499/Viewpoint--Some-things-to-consider-before-filing-an-appeal-to-real-property-tax-assessment.html?nav=18

Statewide Decrease In Visitors Likely

Aloha Kakou:

It is expected that the number of Japanese visitors to Hawaii will dip due to that country's recent difficulties.

"In general, the second quarter will take the biggest hit," said Danny Ojiri, vice president of sales and marketing for Asia Pacific for Outrigger Enterprises.

Japanese visitors do not make up a large percentage of Outrigger Maui Eldorado guests, so the impact to us will be minor.

There have been rumors of cancellations by visitors from the US mainland due to unfounded concerns regarding radiation exposure. We have yet to see any cancellations for that reason.

http://www.staradvertiser.com/news/20110318_Disasters_sap_tourism.html

Hawaii Radiation Levels Normal

Aloha Kakou:

While repair and remediation work continues on the broken Japanese nuclear reactor, radiation levels in Hawaii remain at normal levels. There is no threat of increased radiation.

http://www.staradvertiser.com/news/breaking/118257574.html

If you are interested in the possible path of the nonexistant plume of radiation, take a look at the forcast for the jetstream's path - Hawaii is clearly out of the way.

http://www.pilotfriend.com/av_weather/jetstream/28.htm

Higher Cotton Prices Mean More Expense For Hotels

Aloha Kakou:

The recent dramatic increase in cotton prices mean that hotels pay more for sheets, towels and even pillows. And the current state of the economy means those prices are not being passed along to the consumer.

http://www.cnbc.com/id/15840232?play=1&video=3000007153

Maui January Numbers Up

Aloha Kakou:

Maui's January occupancy came in at 73.6%, up 6.7% from January, 2010.

The island's Average Daily Rate of $245.23 was also up 6.7% from January of last year.

Occupancy and revenue remain below their historic highs but have been moving upward from 2010's low numbers.

http://mauinews.com/page/content.detail/id/546941/Hotel-numbers-continue-gains-in-January.html?nav=10

New For Sale

Aloha Kakou:

Here's the most recent list of units for sale at the Maui Eldorado.


Maui Eldorado Current Active Listings 3/7/2011
J-118 Studio $265,000 LH Jim Foster Chase N Rainbows 661-7994/ Cell 870-5858
G-105 1B/2B $305,000 LH Susan C DeLoria Whalers Realty Inc.
661-8777 ext.533 / Cell 250-5948
K-215 Studio $315,000 LH Susan C DeLoria Whalers Realty Inc.
661-8777 ext 533/ Cell 250-5948
J-109 Studio $325,000 LH Nancy Montoya Whalers Realty Inc.
661-8777 ext.518/ 250-5073
I-201 1B/1B $329,000 LH Susan C DeLoria Whalers Realty Inc.
661-8777 ext 533/ Cell 250-5948
E-205 Studio $338,000 LH Susan C DeLoria Whalers Realty Inc.
661-8777 ext 533/ Cell 250-5948
C-102 1B/1B $349,000 LH Betty Sakamoto Sakamoto Properties
669-0070 / Cell 870-7062
J-120 Studio $349,500 LH Anastasia Tagayuna Prudential Maui Realtors
661-5200 / Cell
D-206 1B/2B $349,500 LH Fred Haywood Realty
579-8848/ Cell 870-4904
K-110 Studio $350,000 LH Bud Kilmer Prudential Maui Realtors
661-5200/ Cell 280-0435
A-210 Studio $350,000 LH Susan C DeLoria Whalers Realty Inc.
661-8777 ext.533 / Cell 250-5948
C-202 1B/1B $370,000 LH Derek Escalera Whalers Realty Inc.
661-8777 ext.229 / Cell 264-4617
K-202 1B/2B $375,000 LH Thomas Brozozowski Roos Realty Inc.
667-9163/ Cell 280-0113
C-201 Studio $399,000 LH Joline Dorner Lowson and Associates
661-8771 / Cell 276-9015
B-103 1B/1B $412,500 LH Donna Nabavi Coldwell Banker
669-6565/ Cell 276-5230
D-102 1B/2B $525,000 LH Nancy Montoya Whalers Realty Inc.
661-8777 ext.518/ 250-5073
K-100 2B/2B $570,000 LH Robert J. Cartwright Whalers Realty Inc.
661-8777 ext.222
C-205 2B/2B $975,000 LH Mischelle Lawrence Whalers Realty Inc.
661-8777 ext. 521/ 264-3337
I-204 2/2B $1,175,000 LH Casey Fukuda Sakamoto Properties Inc.
669-0070 / Cell 264-5362

Hawaii January Numbers Up But Not Enough

Aloha Kakou:

While occupancy and ADR for the state rose almost 10% in January compared to last year, those increases are not sufficient to return state hotels to profitability.

Price recovery for Hawaii's hotel industry is still another two or three years away.

"In the last few dollars of ADR lies almost all the profit," said Barry Wallace, executive vice president of hospitality services for Outrigger Enterprises. "The vast majority of ADR pays for employees and taxes. Profit is the final dollar or two, and that's the dollar that isn't there. Many Hawaii hoteliers can't pay the mortgage or are in some level of distress."

As a result, hoteliers will continue to feel squeezed, and visitors will continue to get great deals, he said.

"We can't pull back the specials because we are still using them to drive demand," Wallace said. "We are all still very cautious."

http://www.hotel-online.com/News/PR2011_1st/Mar11_HawaiiGains.html