Marriott Sells Hawaii Resort for $317M
- Apr 05, 2017
Maui, Hawaii—Marriott International Inc. has wrapped up the disposition of its long-term leasehold interest in The Westin Maui Resort & Spa, Ka’anapali, a premier 759-key lodging destination on 12 oceanfront acres in Maui, Hawaii. Marriott sold the property to Trinity Investments LLC and Oaktree Capital Management LP for $317 million.
“Our approach to selling owned assets reflects the importance of getting full value for the hotel, as well as a strong management agreement and property improvement plan where needed,” Leeny Oberg, CFO of Marriott International, said during Marriott’s fourth quarter 2016 earnings conference call on February 16. Check and check. In addition to the hefty sale price, Marriott secured a long-term agreement with Trinity and Oaktree to continue managing the property.
Sited along Ka’anapali Beach, the Westin Maui consists of the 553-key Ocean Tower, which underwent a $70 million renovation in 2014, and the 206-key Beach Tower, which, per terms of the sale, will get its own makeover at the hands of the new ownership. The resort also features a notable 87,000 square feet of aquatic amenities, and 67,400 square feet of meeting space.
Marriott’s disposition of the Westin Maui was all part of the plan.
“The sale demonstrates the strength of the Westin brand and reaffirms our commitment to our asset-light strategy as we continue our merger integration,” Oberg said in a prepared statement. The Westin Maui transaction comes roughly six months after Marriott completed its landmark $13 billion acquisition of Starwood Hotels & Resorts Worldwide Inc., a move that made Marriott the largest hotel company in the world, and follows the hotel company’s $175 million sale of The St. Regis San Francisco in December 2016.