Home » Cities » Honolulu 
Jun. 20, 2014

Sunstone Hotel Investors Plans to Acquire Maui’s 544-Key Wailea Beach Marriott Resort for $326M

By Adriana Pop, Associate Editor

In an off-market transaction, California real estate investment trust Sunstone Hotel Investors Inc. has agreed to purchase one of Maui’s largest and most popular leisure destinations: the 544-key Wailea Beach Marriott Resort & Spa.

An affiliate of Blackstone Real Estate Partners IV is selling the property for $325.7 million, or $598,600 per room.

Scheduled to close in the third quarter, the transaction marks Sunstone’s first lodging investment in Hawaii. The company plans to fund the acquisition with proceeds from the issuance of common stock, $60 million of which is expected to be issued directly to the seller at a price of $14.87 per share.

Sunstone also plans to invest approximately $65 million in the renovation of the resort in 2015 and 2016.

Located on 22 acres of fee-simple, oceanfront land in the heart of Wailea, the property features some of the largest standard guestrooms on Maui, with an average size of nearly 450 square feet.

Amenities include an infinity-edge swimming pool, world-class golf, tennis courts, water sports, a fitness center, on-site dining options, as well as 45,000 square feet of flexible meeting facilities featuring three ballrooms and 21 meeting rooms. Guests also have access to significant outdoor oceanfront space that may be entitled for future development.

“We are pleased to announce our planned acquisition of the 544-room Wailea Beach Marriott Resort & Spa, our first acquisition in the strong Hawaiian market.  This acquisition fits squarely within our strategy of increasing our portfolio quality and scale while improving our financial flexibility,” Sunstone’s CEO, Ken Cruse, said in a news release.

Regarded as one of the most desirable and high-barrier-to-entry leisure and group destinations in the world, the Maui lodging market is the strongest in Hawaii, consistently maintaining the highest average daily rate of all the Hawaiian Islands. Year-to-date through April 2014, revenue per available room growth across the island’s lodging market climbed 7.6 percent over the same period in 2013.

Furthermore, in 2014, for the 20th consecutive year, Maui was named “Best Island in the World” in the Conde Nast Traveler Reader’s Poll.

Photo credit: www.marriott.com

Tags: , , , , , , , , , , , , , , , , , , ,

Comments

comments