After a contentious dispute with the owner of the Honolulu Club, its bankrupt operator said Friday that it will vacate the property on May 15 and open a new facility in Kakaako on the same day.
Meridian Sports Clubs California LLC’s lease is expiring at the Ward Avenue club, which will be returned to HNLC Inc., a partnership between local businessman Richard Gushman and California real estate investment trust Douglas Emmett Inc.
HNLC has hired ex-Seattle Seahawks football player Sam Adams and his company, Oregon Athletic Club, to operate the Honolulu Club and plans to invest $1 million in improvements, including new equipment, workout areas and a restaurant. Gushman could not be reached for comment Friday.
Meridian will operate the $7 million Island Club & Spa opening nearby at the Ko‘olani Condominium at 1177 Queen St.
Praesidian Capital, a private investment firm, will become majority owner of the Ko‘olani club.
"The new 30,000 square foot Club will be focused on fitness and well-being; it will not offer racquetball, tennis or swimming," Meridian said in a notice to members.
It is premature to say how many of the estimated 3,000 Honolulu Club members will move to the Ko‘olani facility, Meridian spokeswoman Rivian Bell said.
Over the past month, both sides have been corresponding with members in hopes of transferring them to their facilities.
Meridian filed a temporary restraining order against HNLC last month after the company posted notices to members in the building.
The club operator said that memberships in the current Honolulu Club will transfer to the Island Club and Spa, as well as many current employees.
Island Club and Spa manager and co-owner Randy Otto, who currently manages the Honolulu Club, said in a news release he hopes to hire many of the 50 Honolulu Club employees for the new club as well as attract its members.
"I’ve been running personal tours of the new Island Club and Spa with existing members of the Honolulu Club, and the response has been fantastic," he said. "The biggest question has been ‘when can we start?’"
