Lehman Brothers Holdings puts the Ritz-Carlton, Kapalua Hotel up for sale
Just two years after Lehman Brother’s Holdings foreclosed on the Ritz-Carlton, Kapalua, it was announced by Jones Lang LaSalle’s Hotel and Hospitality Group that the Kapalua Resort’s 54 acre oceanfront gem, and The Ritz-Carlton Hotel Company’s only Hawaii hotel, is now being offered for sale.
The Ritz-Carlton, Kapalua Hotel was previously owned by W2005/Gengate Realty. In July, 2011, Lehman, the original lienholder who had financed the hotel prior to their own bankruptcy, foreclosed on the property at $95,000,000. The proceeds from the sale of the property will go toward paying Lehman’s creditors as they prepare to exit Chapter 11 bankruptcy protection.
Under Gengate’s ownership, in 2007 the hotel underwent an extensive interior renovation. The Honolua (north) wing was converted into 107 one and two bedroom condominium suites, which were then offered for sale as the Ritz-Carlton, Kapalua Residential Suites. In that initial offering, 34 suites were purchased. The foreclosure action, and this subsequent offering, does not apply to these privately owned condominium units.
Jones Lang and LaSalle’s website reports that the Maui hotel market has “demonstrated strong fundamentals with RevPAR growth of 12.5% and 8.0 percent in 2011 and 2012, respectively”, and expects a strong international interest. The offering includes the 73 unsold Residential Suites units, the 297 hotel rooms in the south wing, as well common areas and commercial spaces.
This offering by Jones Lang and LaSalle is solely for the Ritz-Carlton, Kapalua hotel and should not be confused with the Residences at Kapalua Bay (formerly the Ritz-Carlton Club and Residences, Kapalua Bay), which is a separate property entirely that was developed on the site of the Kapalua Bay Hotel. The Residences at Kapalua Bay recently underwent a court confirmed foreclosure and title is expected to transfer to the new owner, a lender based Joint Venture, this summer.
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