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Unity House, a non-profit organization that supports labor union members, said today it sold the 51-room Lotus Hotel at Diamond Head, formerly the W Hotel, to a Japanese investment group.
A newly formed Japanese partnership registered as N2885 LLC bought the hotel and the ground fee under the building for $18.5 million, Unity House said in a news release.
Unity House purchased the building only, not the land under it, in December 2009 for $8.5 million. The fee was owned by a group of local families.
Unity House sold the property to help it emerge from bankruptcy.
“This sale will result in the emergence of Unity House from court-monitored bankruptcy in the near future, thus helping thousands of local residents who participate in our organization’s programs,” said Jim Boersema, chairman of Unity House, in the news release.
“The local community on the Gold Coast will benefit because the new owners respect the natural beauty and peaceful nature of that part of the island and they are dedicated to maintaining the property as a world-class boutique hotel,” Boersema said.
Steve Sombrero, president of NAI Chaney Brooks, will be the asset manager for N2885, the news release said.
“The purchase … is a clear indication of the keen interest of investors from Japan seeking properties in Hawaii, leveraging on the recent increased strength of the Japanese Yen,” Sombrero said. “We are especially pleased with this investment as it is difficult to find good fee-simple hotel properties in Waikiki that are on the market and, through this transaction, we will also assist Unity House to redeem itself financially.”
