Seibu changes mind about selling 3 upscale isle hotels

Japanese-based Seibu Group intends to keep its three Hawaii hotels after an unsuccessful effort earlier this year to sell the Hawaii Prince Hotel, Mauna Kea Beach Hotel and Hapuna Beach Prince Hotel.

Seibu retained real estate investment banking and brokerage firm Eastdil Secured to find a buyer for the upscale and luxury hotels plus three golf courses that Real Estate Alert, a subscription-based publication for institutional real estate investors, valued at about $500 million.

But a viable deal couldn’t be reached.

Jon Gersonde, vice president of operations for Mauna Kea Resort, informed homeowners at the resort of the decision recently in an email.

"While this process was extensive and the interest was high, a potential sale could not be consummated," the email said. "Our parent company has expressed their renewed interest in their Hawaii assets and do not anticipate any further sales activity in the near future."

Real Estate Alert reported that a joint venture between Boston-based Rockpoint Group and Dallas-based Highgate Hotels offered around $450 million, but reduced the offer substantially after further study.

Seibu explored selling its Hawaii properties, which operate under the subsidiary Prince Resorts Hawaii, in conjunction with getting its stock re-listed on the Tokyo Stock Exchange later this year or early next year.

Seibu is a conglomerate largely invested in real estate, construction, the Seibu Railway and about 50 Prince hotels in Japan.

The company sold the 1,800-acre Makena Resort including the Maui Prince Hotel in 2007 for $575 million.

The 350-room Hapuna and 258-room Mauna Kea hotels are on Hawaii island and share an 1,839-acre site with two 18-hole golf courses. The 578-room Hawaii Prince on Oahu is in Waikiki but also includes the 27-hole Hawaii Prince Golf Club in Ewa.