Chartres Buys 451-Room Hotel for Rebranding

WAIKIKI, HI-The San Francisco-based Chartres Lodging Group has acquired the 451-room Ocean Resort Waikiki hotel in a joint venture that plans to renovate, rebrand and reposition the property. The Chartres partner in the venture is a fund managed by Morgan Stanley Real Estate Investing. Kokua Hospitality, an independent management firm affiliated with Chartres Lodging, will take on the management of the hotel.

Robert D. Kline, Chartres Lodging president and co-founder, said in announcing the deal that Chartres "has been patiently waiting for the right time and circumstances to invest in the Waikiki lodging market. "Waikiki's market fundamentals have been resurgent," Kline said, noting that the Ocean Resort is situated within a block of the beach and "is an ideal value-added investment opportunity."

Located on the Diamond Head end of Waikiki, the Ocean Resort Hotel Waikiki is near the Honolulu Zoo, Waikiki Aquarium and the 108-acre Kapiolani Park. The hotel is also situated near popular shopping areas such as the International Marketplace and the Royal Hawaiian Shopping Center, and City & County of Honolulu's bus route, the main mode of public transportation in Oahu.

The renovation of the hotel will include a full revitalization of all public spaces, pool deck and guest rooms, according to Maki Nakamura Bara, Chartres Lodging managing partner and co-founder. Bara noted that the average size of the guestrooms "is extraordinarily large, which makes the hotel more conducive to families and longer-term visitors."

Plans call for Chartres to renovate, rebrand and reposition the Waikiki property over the next 18 months. Barry Nidiffer, senior vice president of Chartres Lodging's development management group, said that the makeover will feature a renewed pool deck area with its ocean views, a complete redesign of the lobby and a full refurbishment of the oversized guest rooms and kitchenettes.