Firm buys Princeville Resort, plans $100M rebranding

Starwood Capital Group has acquired the 251-room St. Regis Princeville Resort on Kauai and intends to invest more than $100 million in rebranding the property as 1 Hotel Hanalei Bay.

SH Hotels &Resorts, the hotel management company for Starwood Capital, will operate the hotel effective immediately.

No purchase price was disclosed, but some reports peg the sale at $225 million.

“We are just thrilled to have this opportunity to acquire and create what will surely be one of the most incredible resort properties in the world, 1 Hotel Hanalei Bay,” Barry Sternlicht, chairman of Starwood Capital, said Friday in a statement. “There is no better location, nor more perfect microclimate, to create a wellness resort that will reinvigorate our guests and celebrate the intoxicating beauty of nature.”

Starwood Capital, a Greenwich, Conn.-based private investment firm, said when it is through renovating the property, it “will surely be the 1 Hotel brand’s flagship resort.”

The resort will feature a wellness center, an oversize fitness area with both indoor and outdoor programming, and a diverse activity center.

Starwood Capital refers to 1 Hotels as a luxury lifestyle hotel brand that is inspired by the majesty found in nature. 1 Hotels is currently in Manhattan and Brooklyn in New York, and South Beach, Fla. Starwood said the brand soon will expand to West Hollywood and Sunnyvale, Calif.; Cabo San Lucas, Mexico; and Sanya, China.

East West Partners, a longtime collaborator with Starwood Capital, will partner in planning and development.

“We are very proud to have the opportunity to be a part of this incredible project and look forward to partnering once again with Starwood Capital Group,” said Harry Frampton, founder of East West Partners.

Princeville Resort, which first opened in 1985 as a Sheraton, overlooks Hanalei Bay and offers majestic views of gardens and mountains. The resort was re-branded as a St. Regis in 2009 after a $60 million renovation.

The resort has five dining locations as well as the Halele‘a Spa. Princeville guests also have preferential access to the Princeville Makai Golf Club, which ranked third this year in Golfweek’s Best Resort Courses and has been listed among the “Top 5 Great Golf Settings” by National Geographic Travel Magazine.