Lehman was the sole bidder at Ritz-Carlton, Kapalua Hotel foreclosure auction today, May 5, 2011.
The auction took place at the courthouse steps in Wailuku, Maui. While I was unable to attend, a colleague who was there gave me the inside scoop: There was only one bid today from Lehman Brother’s at $75,000,000. It was announced that there were two other bidders, who did not reveal themselves or make a bid.
The auction is subject to court confirmation, at which time additional bidding may continue. It is my understanding that any new bids must exceed Lehman’s bid by a minimum of 5%. Once the court confirmation is complete (typically 30-45 days from today’s date), I will post an update.
The hotel underwent an extensive renovation in 2007, at which time, the north (Honolua) wing was converted into 107 one and two bedroom condominium suites, which were then offered for sale as the Ritz-Carlton, Kapalua Residential Suites. Since the initial offering, 34 suites were purchased. The foreclosure action did not apply to these privately owned condominium units, but rather to the 73 unsold Residential Suites units, the 296 hotel rooms in the south wing, common areas, and commercial spaces. The hotel management is through the Ritz-Carlton, and the property is conveyed with this management in place.
This foreclosure action is solely for the Ritz-Carlton, Kapalua hotel and should not be confused with the Ritz-Carlton Residences, Kapalua Bay, which is a separate property entirely that was developed on the site of the Kapalua Bay Hotel.