Presidio Hotel Group co-founder Ed DeLorme tells GlobeSt.com the company acquired the 312-room Coconut Beach Resort at Waipouli on Kauai in September for $9.5 million and is now 40% of the way through a $10-million-plus renovation program that will transform the property into Hawaii's first Courtyard by Marriott franchise.
The future Courtyard by Marriott Kauai is located on 10.5 acres of Waipouli Beach in a historic Coconut Grove. Just 10 minutes away from Lihue Airport, it is within walking distance of three shopping villages, including the Coconut Plantation Marketplace, Kauai Village and Waipouli Shopping Center and near attractions such as Waimea Canyon, Kokee State Park, Fern Grotto, Wailua River and Opaekaa Falls.
DeLorme tells GlobeSt.com the impetus to acquire a hotel on Kauai was his familiarity with the island, as he has owned a home there for many years, and the fact that he believes Kauai has much more demand than hotel rooms.
"It was an undervalued property with a lot of upside," he says. "It just seems like a great fit." As for why he chose to fly the Marriott flag, DeLorme says, "We like Marriott and they like us."
"We want to be where our customers want us to be and they are telling us they love Kauai," adds Ed Fuller, president and managing director for international lodging at Marriott. "The 356-room Kauai Marriott and Beach Club at Kalapaki Beach is doing extremely well and we have wanted to strengthen our presence on the Island."
For dining and entertainment, the Courtyard by Marriott Kauai will have a restaurant, lounge, luau grounds for live Hawaiian entertainment and dining and a coffee and juice bar. Recreational amenities will include an outdoor swimming pool, whirlpool, shuffle board and beach volleyball. Other amenities will include beachfront massages, a gift/souvenir shop, a 24-hour business center, wireless Internet access and pay-per-view television. For social events and conferences, the Courtyard by Marriott Kauai will have 5,000 sf of renovated meeting and banquet space.
Presidio Hotel Group acquired the hotel from Pleasant Hawaiian Travel, a family company that owned the property for 20 years. During the renovation, rates are $60 a night and the rooms that are available for guests are largely booked up. Upon completion of the renovation, room rates will jump into the $150 range.
Meantime, DeLorme says Presidio Hotel Group has two more acquisitions under wayAnd continues to be on the lookout for renovation and re-flagging opportunities.
In addition to the new Hawaii property, Presidio Hotel Group's portfolio includes 500 additional rooms in five Northern California properties: the Holiday Inn Select in Fairfield; the Fairfield Inn by Marriott in Rancho Cordova; the Hilton Garden Inn in Napa; the Rocklin Park Hotel In Rocklin, and; Rivage Hotel Riverfront in Sacramento.
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