Business

Kona’s Courtyard Hotel Sells for $100 Million

June 26, 2019, 2:28 PM HST
* Updated July 2, 12:42 PM
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PC: Courtyard King Kamehameha’s Kona Beach Hotel

Blackstone, a New York-based private equity firm, now has a leasehold interest in the Courtyard by Marriott King Kamehameha’s Kona Beach Hotel after spending around $100 million to purchase it.

The hotel is located on 13 acres next to the Kailua Pier at the intersection of Ali‘i Drive and Palani Road.

Blackstone Group is a major real estate investment group in Hawai‘i, spending over $1.7 billion on island real estate last year, including the Grand Wailea Maui, A Waldorf Astoria Resort, for $1.1 billion. The group also purchased Turtle Bay Resort in O‘ahu for $332.5 million in 2017.

The Courtyard by Marriott is a 452-room hotel was previously owned by California-headquartered Pacifica Hotels. Until recently, the terms of the sale forbid disclosure of the purchaser. The hotel was bought by Pacifica in 2007 and the company began carrying the Courtyard by Marriott logo in 2011.

The transaction was arranged by the senior managing director of HFF investment advisory team, Tony Malk; Director Tracey Goo; and analysists Aaron Lapping and Blake Malecha. Scott Hall told Business Wire this new buyer, “understands the dynamic fundamentals of the Big Island, the uniqueness of the hotel and the continued upside that will be realized through this investment.”

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Blackstone has no immediate plans for changes for the hotel, which has a history dating back 60 years.

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“We look forward to investing in the property and working with the hotel manager, Pacifica, the hotel employees, and the community to continue providing a great hospitality experience for residents and visitors,” the Blackstone spokesperson told Pacific Business News.

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