2019
Holiday Inn Express in Waikiki is available for purchase
A high-rise hotel in Honolulu’s popular Waikiki section is on the block with expectations that bids will approach $225 million.
The 596-room Holiday Inn Express Waikiki, which opened two years ago following an extensive renovation, has an estimated value of roughly $375,000/room, or $223.5 million. Eastdil Secured is representing the owner, a joint venture between C.V. Starr & Co. of New York and Clearview Hotel Capital of Newport Beach, Calif.
A sale would mark a quick turnaround for the property. The joint venture acquired it for $102.6 million in 2015, when it operated as the Maile Sky Court Hotel, and conducted a $30 million renovation. The hotel reopened in February 2017, touted as the largest Holiday Inn Express in the U.S.
The property is offered subject to a franchise agreement that runs until 2042 with InterContinental Hotels, the U.K. company that operates the Holiday Inn brand. But in 2022, a buyer would have the option of either rebranding half the rooms with another flag, operating them as a separate, independent hotel or selling them off as time-share units.
The property is still ramping up its performance to be in line with its competitive set. On average, upper-midscale hotels in Waikiki were 83.1% occupied last year, up from 82.7% the previous year, according to STR. Rates grew 3.8% to an average of $150.31/room, pushing revenue up 4.4% to $124.97/room. Marketing materials note that visitor arrivals to the island of Oahu were up 4.4% in the year ending in November, with average stays and spending per visitor also increasing.
The 43-story building was completed in 1984. The rooms are above a five-level podium that contains the lobby, three levels of parking that generates revenue, and retail space. There is an outdoor pool, a sky deck and fitness and business centers.
The hotel is at 2058 Kuhio Avenue, about a block from the high-end shopping district along Kalakaua Avenue and three blocks from Waikiki Beach
- Japan lead foreign investors in Hawaii
- Chinese - high rise by Ala Moana
- 888 Ala Moana - jv - not proceeding
- Investment trends in Hotels
Lack of Hawaii apartment inventory ‘stumps’ investors
Hawaii’s lack of apartment inventory “stumped” investors in 2013, according to a market summary report from Apartment Advisors, even as the average price for an apartment jumped 29 percent during the fourth quarter.
The average price per apartment unit topped $207,000 during fourth quarter 2013, the summary said, a 29 percent increase from the fourth quarter of 2012.
In all, 702 units in a total of 62 buildings were sold in 2013, compared to the 729 units sold in 2012.
“For the majority of 2013, a lack of quality inventory remained one of the biggest challenges,” said the report, which was authored by Jared Ikeda, president of Apartment Advisors. “Many investors flush with cash and equipped with historically low interest rates were stumped by the lack of properties available for purchase.”
A “whopping” 87 percent of all transactions were under $3 million, the report said.
