HAWAII-The Hualalai Resort here has changed earlier this month for around $550 million, making it one of the largest hotel deals in US history. The developer, Tokyo-based Kajima Corp., sold the 865-acre to a joint venture that includes MSD Capital, the private investment firm of Dell computer founder Michael Dell and his family, and an investment fund of Boston-based Rockpoint Group.

Hualalai at Historic Ka‘upulehu is one of the most exclusive master-planned residential resort communities in the world. Located 15 minutes north of Kona International Airport on the Big Island, the property includes the 234-room Four Seasons Resort Hualalai at Historic Ka’upulehu, a partially developed 300-unit residential community, two golf courses. The hotel opened in 1994. Its average daily rate and average occupancy are believed to be upward of $750 and 90%, respectively, putting it atop the Hawaii hotel market and among the best in the US.

Kajima is a developer that tends to sell once properties are at or near completion. With the residential portion nearing completion and unsolicited offers pouring in, Kajima figured it time to sell, says Arthur Buser, managing director for Jones Lang LaSalle Hotels, which arranged the transaction.Citing confidentiality agreements, Buser declined to confirm the sale price, the performance figures or the amount of debt arranged for the acquisition, which at 75% leverage would be about $412 million. Buser would say the sale represents the second largest hotel deal in US history, behind the $675-million sale of the Plaza Hotel in New York in 2004, and that the property’s ADR and occupancy are “the highest in Hawaii and one of the highest in the US.”

Looking ahead, Buser says there is room to add structures to the property, whether they are hotel rooms or private residences. “There are a number of acres left to develop,” Buser says. “The hotel has flourished under the current configuration so nobody should expect they will add a large tower but there is absolutely development potential.”

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?


NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

 

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.