Starwood Buys Island Hotel for $40M

KAUAI, HI-Starwood Hotels & Resorts Worldwide Inc. has acquired the 413-room Sheraton Kauai Resort here for $40 million. The White Plains, NY-based hotelier heretofore had been managing the property under its Sheraton brand for the seller, Obayashi Corp. The sale closed March 3.

The Sheraton Kauai is located alongside Poipu Beach on the south side of the island. The resort sits on 18 acres that includes five restaurants and lounges; a fitness and massage center; two outdoor pools and Jacuzzi, and; tennis courts and two championship golf courses within two miles.

“We are pleased to acquire this resort property at a very attractive price per key representing a discount to replacement cost,” says Starwood Real Estate Group president Ted Darnall. “Acquiring this resort reinforces our strategic commitment to Kauai and the Hawaiian Islands, which remain the most important leisure destination for U.S. travelers.”