HONOLULU-Citing the impact of the AIG effect, the locally based Taylor Group has formed a new company to acquire and create one-of-a-kind, four- and five-star resorts in Hawaii, the Mainland US and Southeast Asia. The company said it has established relationships with several equity groups to fund the growth plan, which will be especially oriented toward beach resorts and ski-oriented properties.

Mark Taylor, principal of the Taylor Group, said in a prepared statement that, "Because of the economy and the so-called AIG effect, resorts have suffered significantly in the last downturn, which has negatively affected values. While transaction activity remains stunted, we believe that over the next 12 to 18 months there will be a significant increase in acquisition opportunities." The AIG effect refers to the backlash against spending at top-tier resorts after the disclosure that insurance giant American International Group spent $400,000 on a retreat at the St. Regis Monarch Beach resort and spa in Dana Point, CA after accepting an $85 billion federal bailout. Hotel industry experts blame the AIG revelation for the cancellations of meetings and other events at upscale resorts.

Working with hotel management companies, brokers and its own extensive relationships, the Taylor Group will seek out full-service hotels with 200 to 400 rooms. Meeting and convention-oriented resorts are not a priority, the company says.

Taylor says his firm's aim will be to create four- and five-star resort experiences through "cutting-edge design and service." Says Taylor, "We are on the cusp of a new generation of hotels and resorts, and we intend to be trend-setters that attract and retain guests and generate higher profits.”

Taylor will work with hotel management companies and brokers as well as relying on its relationships in the hotel industry. “Our hotels will be both branded and independent, but each will be positioned in a class different from all other hotels in their respective markets,” Taylor said.

The company plans to grow at what it calls "a measured rate," adding one to two properties a year. Taylor, as principal, will lead the Taylor Group. He has more than 25 years’ experience in the design and development of hotels and resorts and hotels on the Mainland US, Hawaii, Australia and Southeast Asia. Properties range from the five-star St. Regis Hotel, Resort and Residences in Deer Valley, Utah to the Royal Hawaiian Hotel and Sheraton Hotel in Waikiki and the Westin Moana Surfrider on Waikiki Beach.