FHR's luxury management company, Fairmont Hotels & Resorts, will operate the property, which will be officially flagged "The Fairmont Orchid, Hawaii" in December 2002.
The purchase price for the property is approximately $140 million plus closing costs and will be funded with existing credit facilities. The transaction is expected to close in December, subject to certain conditions.
"FHR has been actively seeking prudent growth in the United States to increase its luxury portfolio. This acquisition is of strategic importance to us," says William Fatt, chief executive officer of FHR. "The Fairmont brand is well positioned in the resort market, in locations with high barriers to entry, and has a strong presence on the west coast. In addition, the guest profile and product quality of The Orchid at Mauna Lani are consistent with those of the Fairmont brand. As a result, we believe it will be a strong complement to our current portfolio."
Fatt adds the company has the ability to improve the performance of the property, pointing to its strength in the luxury group market and the facility's extensive meeting space.
"We should benefit from both cost and customer synergies with The Fairmont Kea Lani in Maui. The Orchid at Mauna Lani has had recent guestroom and public area renovations that are consistent with the standards of the Fairmont brand. This will allow us to focus on furtherenhancements to improve revenues," Fatt says.
The resort is situated on 32 beachfront acres along the semi-tropical KohalaCoast, on the Northwestern coast of Hawaii. With 538 guestrooms and suites, theresort offers a full-service spa and fitness center, 42,000 sf offunction space, three restaurants, 10 tennis courts, and is located close to two18-hole golf courses.
The Orchid at Mauna Lani was named to Conde Nast Traveler's 2002 Gold List alongside 21 of Fairmont's hotels and resorts. The property was also called 'one of the best golf resorts' by Conde Nast Traveler's 2001 Top Golf Resorts readers' survey and was a 2001 Conde Nast Traveler Readers' Choice award winner.
FHR's current portfolio consists of 79 luxury and first classproperties with approximately 31,000 guestrooms in Canada, the United States,Mexico, Bermuda, Barbados and the United Arab Emirates. It holds an 83.5%controlling interest in Fairmont, North America's largest luxury hotelmanagement company.
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
