(To read more on the multifamily market, click here.)
KAPALUA, HI-The Ritz-Carlton here will replace 185 of its 548 hotel rooms with 107 condotel suites as part of a $95-million renovation project. The project, by owner GenCom Holdings Inc. of Miami, is scheduled to get under way in July and be complete before the 2007 holiday season.
Owners buying a residential suite will hold a legal deed to the property, but can elect to place it in a hotel rental pool run by Ritz-Carlton. The partial conversion of the five-diamond hotel marks the first time Ritz-Carlton-branded residential units have been available in Hawaii.
"It's a financing mechanism that allows us to upgrade the entire facility without losing guest rooms," says Jerry Landeck, a senior partner for GenCom Group, which acquired the asset in March 2006 with equity from Highgate Holdings and Whitehall Street Global Real Estate Limited Partnership 2005. "We are doing a very similar conversion at the Ritz-Carlton Bachelor Gulch and it has been very well received by the marketplace."
In addition, Landeck says the conversion is meant to accommodate growing demand from folks wanting to buy second homes in their favorite vacation destinations. It is also meant to accommodate the growing trend of families renting condos in order to have family-sized accommodations.
The Ritz-Carlton Kapalua is a AAA Five-Diamond oceanfront property on 50 acres of Maui's northwest shore. The plantation-style hotel is part of the 23,000-acre Kapalua resort on Maui.
GenCom owns Ritz-Carlton properties in Philadelphia, Key Biscayne, FL, and Bachelor Gulch, CO. Founded by Karim Alibhai, the company has added or is in the process of adding full-ownership options to all seven of its Ritz-Carlton properties.
As part of the Kapalua renovation, the on-site space and fitness center will be reconfigured as a two-story facility and expanded to 11,000 sf. In addition, three restaurants will be expanded or renovated and teen activities will be added to the menu of children's activities.
Residential suite purchase prices at the Kapalua property are expected to start at $895,000. Sales are expected to start in March. Daily rental rates for the renovated hotel will start at $475.
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.
