Resorttrust Inc., a Japanese based company, has announced that they have purchased the Kahala Hotel and Resort for $300 million Leasehold. This equates to approximately $887,000 per room, which makes it the highest per-room price paid for any Oahu hotel. Joe Toy, the president and CEO of Hospitality Advisors commented, "Four Seasons Resort Hualalai on the Big Island is the only property in Hawaii that ever traded for more money on a per-key (room) basis. It went for $1.1 million per key, but it was fee simple. This property, on the other hand, is leasehold and it's a pure hotel transaction. The reaction from investors will be, 'That's a pretty high price.'"
The Kahala hotel's nightly room rate is currently about $495, with the resort's two-bedroom Presidential Suite going for about $4,000 a night ant its two-bedroom Imperial Suite going for about $10,000 per night. Keith Vieira, of KV and Associates, Hospitality Consulting, commented, "Since their average daily rate is no where near the $800 that you would expect to see for that price, I think it sends a message to others who are looking that there is strong faith in the continuation of the market on Oahu. It also speaks to the strength of Hawaii's time-share, vacation ownership and the condotel market. There is lots of demand as seen by the success of Trump and strong interest in the coming Ritz-Carlton towers. These kinds of owners usually have higher occupancies and can get more per key."
Source: Honolulu Star Advertiser, 8-1-2014, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Principal Broker, REALTOR®
Global Executive Realty, LLC
www.myhawaiihomesearch.com
www.myhawaiicondo.com
www.myhawaiidreamhome.com
