Ritz Kapalua Sells 93 Suites for $176M to Fund Renovation
- Mar 17, 2008
Saturday was a big day at the Ritz-Carlton, Kapalua in Lahaina, Hawaii. Ninety-three of hotel’s 107 one- and two-bedroom whole-ownership suites sold for $176 million. The sales came in a single day.“If you look at the general condo-hotel market, it is going very poorly,” Jerry Landeck, a senior partner with Miami-based Gencom Group, which owns the Ritz-Carlton, Kapalua, told CPN today. “Our formula goes against that trend by combining very high end brands, very upscale amenities, and locations with very high barriers to entry –Kapalua is the only hotel within 23,000 acres on one end of Maui.”The whole-ownership suites sold on Satruday generated enough revenue to cover the hotel’s recent $160 million renovation of its 463 rooms and suites and the construction of a new spa and fitness center, new and expanded restaurants and pools and an environmental education center for young people. Prices for the suites ranged from $895,000 to $6.4 million each. A Japanese buyer took the $6.4 million property, paying a record-breaking price for the area. About 40 percent of the purchasers were international buyers from Japan, western Canada and Europe. The others were from Hawaii, California and other U.S. states. As CPN reported last week, The Ritz Carlton Hotel Co. is fortifying its presence in Hawaii with three hotel developments that contain significant wholly-owned and fractional ownership components. In addition to the Ritz-Carlton Kapalua, which reopened in January following the renovation, a new property on Kapalua Bay is slated to open next year with private and fractional ownership residences. On the island of Kauai, Ritz-Carlton Residences and fractional Ritz-Carlton Club residences are being built atop a coastal bluff at the Kauai Lagoons Resort.The Gencom Group, is a real estate investment and development firm that owns seven properties developed or under development in conjunction with Ritz-Carlton. Vancouver-based S&P Destination Properties handled the sales from its Pacific region offices in Honolulu.