By Adriana Pop, Associate Editor
The Blackstone Group has agreed to purchase the leasehold interest in the 1,230-room Hyatt Regency Waikiki Beach Resort and Spa in Honolulu.
According to Real Estate Alert, the property’s current owner – a joint venture comprising Goldman Sachs’ Whitehall Street Real Estate Fund and Hyatt Hotels Corp. – is selling the hotel for approximately $450 million, or $366,000 per room. Eastdil Secured is brokering the transaction on behalf of the seller.
When completed, the transaction will be the second-largest hotel sale in the U.S. since the market downturn; it follows the 2011 sale of the Manchester Grand Hyatt San Diego for $570 million. Blackstone is planning a $75 million renovation of the property. Hyatt will continue to manage the hotel, which will remain under its flag.
The property comprises two high-rises. Amenities include an outdoor swimming pool, wellness facilities, a gym, a well-equipped business center, as well as restaurants and bars.
Located at 2424 Kalakaua Ave., the Hyatt Regency Waikiki Beach opened in 1974. In 2008, Whitehall and Hyatt formed a joint venture to purchase the hotel out of bankruptcy from Japanese firm Azabu Buildings.Whitehall’s interest was 92 percent, while Hyatt owned the remaining stake.
In other news, local developer MW Group Ltd. has broken ground on a $46 million assisted-living rental apartment complex in Pearl City. The Pacific Business News reports that the rental complex, known as The Plaza at Pearl City, will offer 159 units. The project is expected to open in 2014 and create about 400 construction jobs and 100 permanent jobs. MW Group is also considering a second phase of development, which would include 60 memory-care units.
Photo credits: http://hyattregency-waikikibeach.h-rez.com