Blackstone selling Waikiki resort for $800M
CRAIG T. KOJIMA / APRIL 15
Hyatt Regency Waikiki Beach Resort and Spa, left, is seen from Kalakaua Avenue on April 15.
Blackstone Group LP has reached an agreement to sell the leasehold interests in the Hyatt Regency Waikiki Beach Resort & Spa for $800 million to Mirae Asset Global Investments, according to sources close to the deal.
Mirae is paying about $650,000 per room. While that price is not a record, it represents one of the more significant leasehold sales for the market both in terms of price and positioning, said Joseph Toy, president and CEO of Hospitality Advisors LLC. When the Hyatt Regency Waikiki was built in 1976 for $100 million by celebrated developer Christopher Hemmeter, it launched the concept of the opulent mega-resort in Hawaii.
Toy said the largest recent transaction on a so-called per-room-key basis was in 2014 when the Kahala Hotel & Resort was sold to Japan-based Resorttrust Inc. for about $300 million or $887,000 per room key.
“There have been a few other deals in the $700,000 per-key range,” Toy said. “But I’d say Blackstone and the broker are pretty happy.”
The deal brings Mirae’s recent investments in Hawaii to over $1 billion. The Seoul-based company, which was formed in the wake of the Asian currency crisis, spent $220 million to acquire the 540-room Fairmont Orchid Hotel in May 2015. The firm, which has a presence in 12 countries and across five continents, has rapidly been growing its hotel portfolio.
3 responses to “Blackstone selling Waikiki resort for $800M”
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800 million seems like alot for the leasehold interest.
American assets being sold to investors of foreign countries are frightening – is this a good thing?
Wake up folks….Waikiki and other Hawaii resorts areas are now part of the Wall Street Mafia portfolio…buy and sell. buy and sell…because Wall Street can exploit the physical beauty of Hawaii and the kind, Aloha Spirit of its people (as contrasted to the horrible gangs who have invaded Mexico and Latin America resort areas)and continue to increase room rates, etc…and thereby increasing the profit margin for these Hawaii properties…and then flip da properties 5-7 years…so who is benefiting from these real estate/business transactions? Where the kala going? Not here in Hawaii nei. Folks, we are just pawns in a bigger national and international bidding war to make money on places like Hawaii…sad but true…so important we have real political leadership from City Hall and State Capitol to require Wall Street resort owned properties to contribute back to our communities…school programs, job training, supporting our cultural programs, and help da homeless (who Waikiki complained about and Mayor C decided to sweep them away…to our nbhds of Kaimuki, Kalihi, downtown, Manoa….all shibai because Mayor want to get re-elected this year).
The local newspaper and tv news should do a “real” story of how our Hawaii resorts are now held by mega-businesses and real estate investment groups for the sole purpose of increasing profit and value and then flip and sell…with no regard to our local communities…oh yeah, they will say we create many jobs….but in the end, these absentee business owners no care about Hawaii…da kala from profits will go anywhere in world were they can make more profit…