The Ritz-Carlton Resort had been suffering from poor market conditions post-9/11 and, while the market had largely recovered, the Resort had been unable to recapture market share. CHM's research and analysis revealed that the hotel would be better positioned and more competitive, if in fact, the property contained a lower room count. Downsizing the hotel would improve the hotel's market performance, allowing for increased internal compression and a significantly higher ADR, but given the high fixed costs associated with resort amenities (i.e., spa, food and beverage) and the remaining rooms required that we consider alternative and compatible uses. We determined the optimal number of guest rooms through an analysis of group demand by day, as well as considered various strategies for increasing ADR. Then, we evaluated the remaining inventory, assessing the room configuration, room type and location within the buildings. Market research suggested that strong demand existed for various forms of vacation ownership product including condos, condo-hotel, timeshare and whole ownership residences. We tested numerous development scenarios considering the construction impact, phasing, cost of construction, the approvals process and the benefits to the hotel operations once completed. We met with representatives of MVCI (Marriott Vacation Club International) to develop a Ritz-Carlton Club concept that would work at Kapalua. In addition to identifying the development opportunity, we met with the landowners (the Ritz-Carlton Kapalua is a leasehold) and re-negotiated lease restrictions to allow alternative development on the site. In addition, the redevelopment (construction) program was designed to minimize impact and thereby shorten the approval process. CHM assisted in ultimately executing a sale in 2006 at a favorable return based on opportune market timing and price potential.