(Updated with additional information)
Blackstone Real Estate said Wednesday it had agreed to sell Turtle Bay Resort in Hawaii to an undisclosed buyer for $725 million. Host Hotels & Resorts subsequently announced that it was the buyer and planned to rebrand the property as a Ritz-Carlton. In a separate transaction, Blackstone closed on a 65-acre land sale at Turtle Bay to Areté Collective.
The asset management giant purchased the 450-key hotel on 1,300 acres along the North Shore of O’ahu in 2018 for $332 million from a consortium including Credit Suisse and Wells Fargo. Blackstone subsequently invested significant capital in renovations.
Rob Harper, head of Blackstone Real Estate Asset Management Americas, said, “This transaction is an excellent outcome for our investors and a testament to Blackstone’s ability, including through the pandemic, to transform iconic, luxury hospitality assets. The team executed an ambitious business plan, investing significant capital to reposition the resort for long-term success while also adding high-quality jobs on the North Shore.”
At Host Hotels, president and CEO James F. Risoleo said, “O’ahu is a high demand leisure destination with consistently high occupancy, an internationally diverse demand base, and high barriers to entry, resulting in slightly negative supply growth historically and essentially no anticipated near-term supply. In addition, because of the Resort’s recent transformational renovation, we do not expect meaningful capital expenditures in the near term.”
Total sale proceeds generated on the hotel by Blackstone will total $768 million, including the land sale to Areté. Eastdil Secured, JLL and Sumitomo Mitsui Banking Corporation are acting as Blackstone’s financial advisors. Simpson Thacher & Bartlett LLP is serving as Blackstone’s legal counsel. The sale is expected to close in the third quarter.
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