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Turtle Bay Sold???

Lake Arrowhead, CA
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87 posts
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Turtle Bay Sold???

I heard a rumor that Turtle Bay was purchased by Starwood Hotels. Does anyone know if this is true?

Ottawa, Canada
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885 posts
158 reviews
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1. Re: Turtle Bay Sold???

If so, thats great. That way I'll get points when I stay there! Whooo!

Chicagoland
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20,754 posts
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2. Re: Turtle Bay Sold???

All I could turn up via Google was a March 28 story saying Starwood had expressed interest in buying a portion of the property. Hilton had passed on bidding for it. I sure wish *somebody* would do something with the property. It's a great location in need of some dynamite or at least a total gutting.

Birmingham, Alabama
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5,619 posts
39 reviews
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3. Re: Turtle Bay Sold???

Didn't Hilton own it before?

Honolulu, Hawaii
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4. Re: Turtle Bay Sold???

Starwood is most interested in acquiring Hawaii resort sites for its very successful upscale timeshare development arm. It is doing gangbusters at its Kaanapali North Beach projects, has build-ready sites in Priceville and Poipu, and is looking at the proposed Kona Kai Ola Resort at Kealakehe.

They have also found it is great to own (rather than just operate) a nearby hotel, so they have been snatching up a few well-located facilities as well.

After three decades of mixed operations, the Turtle Bay Hotel now reports profits thanks to general tourism growth, the rocketing hotel rates in the islands, and an increasing number of Oahu visitors looking for a Waikiki alternative.

And, as Turtle Bay has in-place (though highly controversial) approvals for four more hotels and another 2,800 rooms and condos, which are highly scarce and valuable entitlements at present in Hawaii, it makes sense that the big players are sniffing around.

The prize possession in all this is the proposed hotel site on Kawela Bay, one of the most beautiful beaches in the world. But, there is significant community opposition and hesitance to see the master plan fulfilled.

Hilton never owned the hotel and/or resort. As with most Hilton or Hyatt or Marriott or Sheraton hotels, they are merely the "brand" and operator under contract to the owners.

Interestingly, the resort and hotel were originally developed by a joint venture with Del Webb (from Vegas fame), Prudential Insurance, and the Campbell Estate....based on the hopes gambling would be legalized in the isolated location. The hotel opened in 1972.

The property was bought by the Kuilima Dev. Corp in 1976 who had Hyatt and then Hilton (1983) manage the facility. It was then sold to the current owners, Kuilima Resort Co., in 1988, primarily a Japanese investment group.

Lake Arrowhead, CA
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87 posts
5 reviews
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5. Re: Turtle Bay Sold???

Thanks for the information regarding the hotel. I did not know the ownership history.

I personally hope that there is no further development of the adjacent land at Turtle Bay but some upgrading is done at the hotel. North Shore is a wonderful contrast to the city bustle of Waikiki.

Kahuku, HI
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60 posts
7 reviews
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6. Re: Turtle Bay Sold???

Turtle Bay Resort HAS been sold. Kuilima Dev. CO. sold the resort last month. There is one hitch in all this and that is that at this point Turtle Bay Resort is VERY in debt and the new owners , Starwood, is refusing to complete the take over until all debts are paid. To date Turtle Bay is 400 million dollars in debt and does not have the funds to make its June loan payment.

Unfortunately, with the purchase of the hotel, it looks like it is full steam ahead on the construction of the condos and new hotels.

The whole situation is so upsetting for those of us that live in Kahuku.

Honolulu, Hawaii
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7. Re: Turtle Bay Sold???

Haleiwagirl...

The property has not yet been purchased by Starwood. They submitted an offer in response to a prospectus sent out by KDC, but are still in the prolonged "due dillegence" stage, and other offers are reportedly still being solicited.

There has been no transaction to date and these deals often fall apart as the buyer gets further into the data. And, as you noted there are problems with the debt financing of the hotel and resort.

Also, whether Starwood takes just the hotel and a development site or two, or the entire resort complex, is still being negotiated.

Oahu, Hawaii
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64 posts
4 reviews
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8. Re: Turtle Bay Sold???

honoluluadvertiser.com/apps/pbcs.dll/article…

Read it for yourself in the Honolulu Advertiser. June 2007.

Hawaii
2 posts
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9. Re: Turtle Bay Sold???

For more on turtle bay:

http://www.turtlebayvacationrentals.com/

Ottawa, Canada
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885 posts
158 reviews
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10. Re: Turtle Bay Sold???

The potential deal with Starwood and Turtle Bay has fallen through. Too bad but maybe another investor will come along.

Here is the article:

…honoluluadvertiser.com/article/2007/Jul/14/…