KAILUA-KONA, HI—In this exclusive interview with Pat Fitzgerald, CEO of Hualalai Resort, the luxury residential community in Hawaii, we discuss the tremendous success this year has brought to the resort and as it continues to expand with new homes. Check out the Q&A below for more about their growth and upcoming trends in luxury real estate.

GlobeSt.com: How did you get started in real estate?

Pat Fitzgerald: I started in a role selling some real estate syndication deals in the mid 80's and then joined a start-up firm that built homes in the Hamptons on the Eastern end of Long Island, New York.

GlobeSt.com: How have sales been this year compared to previous years at Hualalai? 

Fitzgerald: Our sales volume this year will be our second best year since 2007 and we are just missing that year by 1.5% in total revenue. Total sales are 25% higher than 2012 and 5% higher than last year. These numbers are more significant when you consider we have had historically low inventory levels over the past two years.

GlobeSt.com: What do you attribute the recent sales success to?  

Fitzgerald: Hualalai Resort is a very rare combination of an outstanding private residential community with a world-class Four Seasons hotel. We have first class amenities including six restaurants including four that are ocean front, two golf courses, a beach club, the award winning Hualalai Sports Club & Spa, two member clubhouses, great tennis and a terrific ocean activities program. We also have an ownership that has made an ongoing financial commitment to invest in the resort. Lastly, and most importantly, when people ask about our success we always say, “it's so much more than bricks and mortar”—we have a great team that delivers unparalleled service to our Hualalai Club members and Four Seasons guests. I know we have members and guests that can purchase a home or travel to any resort in the world and I am proud that they make Hualalai their choice for their second home or vacation. It is because of our terrific staff who establish a strong personal connection with our members and guests here that they choose to make this important investment in their second home or family vacation. 

GlobeSt.com: Tell me the reasoning behind keeping home prices the same through the recession. How has that benefitted communities like Hualalai?

Fitzgerald: We strongly believe in the quality of product here whether that was our residential product or our hotel experience. We did not discount either our room rates nor our lot prices.  It was also based on our conviction that it was the best for our existing members investment in to Hualalai and the future values of our real estate. We assumed we wouldn't sell any lots for a few years and that turned out to be accurate. But when the market returned we were achieving sales prices of more than double other comparable nearby high end resort properties. In addition, the values of our existing homes have far exceeded those of properties who decided to cut prices on their land. This differential has now held up for more than six years.

Thankfully our decision has been further reinforced by our recent sales to spec builders. We are happy to report that there are currently five spec homes under construction at Hualalai with the first slated for completion December of this year. These five are the first of 21 spec homes planned for release over the next several years. This new inventory will help meet the continued demand of our customers for new homes at Hualalai. These independent developers realize that the breadth of amenities at Hualalai, including the Four Seasons Resort and Hualalai Club, are unmatched at any resort property. Most importantly, they recognize how real estate values at Hualalai have exceeded other comparable communities. They could have purchased lots at other surrounding properties for significantly less money but chose Hualalai.

GlobeSt.com: What is Hualalai Resort's anticipated growth over the next few years?

Fitzgerald: We expect to see steady growth through sellout which will probably occur within the next 10-15 years. That timeframe could shrink as we deplete the available developable land.

GlobeSt.com: Are surrounding communities experiencing similar growth?  

Fitzgerald: Not to the level that Hualalai is. On a comparable basis, surrounding properties have much higher inventory levels and don't achieve our sales per square foot price points. That said, sales are taking place throughout Hawaii and inventory levels are now being reduced.

GlobeSt.com: Aside from Hawaii, what are some other hot markets for luxury real estate?

Fitzgerald: Vail and Aspen as locations are still very strong.  Martis Camp in Lake Tahoe has been very successful.   

GlobeSt.com: What real estate trends you are seeing in Hawaii? What about nationwide?

Fitzgerald: Downtown Waikiki on Oahu is experiencing explosive growth in new condominium projects. A single developer recently sold over $780 million of condo residences that won't be complete until 2017.  There are also a number of other high end condo projects planned or under construction in Kaka'ako. There are currently only two other resort properties currently selling, on a statewide basis, that could be compared to Hualalai. Given the challenges of very little property zoned for resorts and the risk associated with master planning, entitlements, financing and market fluctuations, I don't foresee much new resort development in Hawaii's future.

I do think that urban locations are positioning or selling some of their new developments like resorts. Everyone from Baby Boomers to Millennials to Gen Xers are looking for great activities, fun restaurants and sports, art and culture. For example, look at the redevelopment of the Union Station project in downtown Denver—incredibly successful.   

GlobeSt.com: Does Hualalai Resort reflect these trends?

Fitzgerald: We feel that the trend for Hualalai will be primarily be single-family detached residences.  Hualalai Resort is a classic example of the "less is more" approach—we have consistently "down-zoned the residential development" land initiated by the hotel design of a low density two story hotel with substantially lower residential densities than approved by the County of Hawte "ii.

GlobeSt.com: Lastly, what is your personal secret to success?

Fitzgerald: My not so secret is that I surround myself with great people that are passionate about what they do. They are the key to delivering a great experience to members and guests.