Investors say “Aloha” to beachfront resorts
Investors have made several significant investments in the Hawaiian resort sector.
Commerz Real has acquired the Pacific Beach Hotel in Honolulu for its open-end real estate fund, hausInvest. A sales price was not disclosed. Pacific Beach Hotel, which is located directly on Waikiki Beach, is undergoing an extensive $115 million renovation/expansion that is expected to be completed by autumn 2017. The property will be renamed 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 acquired 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 roo