Germany investor acquires hotel in Honolulu
Commerz Real has acquired the Pacific Beach Hotel in Honolulu for its open-ended real estate fund hausInvest. The sales price was $520 million.
Pacific Beach Hotel, which is located directly on Waikiki Beach, is undergoing an extensive $115 million renovation/expansion plan that is expected to be completed by autumn 2017. The property will then be re-positioned as “Alohilani Resort Waikiki Beach” with a gross floor space of more than 730,000 square feet.The lease agreement for the Alohilani Resort Waikiki Beach is more than 20 years with two extension options for a further 25 years.
With a two-stage share deal, Commerz Real initially acquires a majority stake in the property, with a purchase option on the remaining shares from January 2019. The seller and continuing operator of the property is a subsidiary of Highgate.
Built in 1969 and expanded and modernized in 1976, the hotel will have 839 suites and rooms, divided into two buildings with 17 and 38 storie