{"id":1004099011,"date":"2014-06-23T06:21:11","date_gmt":"2014-06-23T14:21:11","guid":{"rendered":"https:\/\/www.commercialsearch.com\/news\/?p=1004099011"},"modified":"2022-12-09T02:06:49","modified_gmt":"2022-12-09T10:06:49","slug":"sunstone-to-acquire-544-key-maui-resort-for-326m","status":"publish","type":"post","link":"https:\/\/www.commercialsearch.com\/news\/sunstone-to-acquire-544-key-maui-resort-for-326m\/","title":{"rendered":"Sunstone to Acquire 544-Key Maui Resort for $326M"},"content":{"rendered":"

By Keith Loria, Contributing Editor<\/em><\/p>\n

Sunstone\u00a0Hotel Investors, Inc. has entered into a definitive agreement to acquire the 544-key Wailea Beach Marriott Resort & Spa for $325.7 million, or\u00a0$598,600\u00a0per key, from an affiliate of Blackstone Real Estate Partners IV.<\/p>\n

The deal, Sunstone\u2019s first lodging investment in Hawaii, is expected to close in the third quarter.<\/p>\n

\u201cWe are pleased to announce our planned acquisition of the 544-room Wailea Beach Marriott Resort & Spa, our first acquisition in the strong Hawaiian market,\u201d Ken Cruse, Sunstone\u2019s CEO, said in a company statement. \u201cThis acquisition fits squarely within our strategy of increasing our portfolio quality and scale while improving our financial flexibility.\u201d<\/p>\n

Sunstone Hotel Investors also announced it will issue 18 million shares of common stock in a public offering. The company will use the proceeds from the offering to pay for a portion of the resort acquisition. The proceeds will also be used for other potential future acquisitions and general corporate purposes.<\/p>\n

According to Maui Real Estate Advisor, the\u00a0Maui\u00a0lodging market is\u00a0the state\u2019s strongest lodging market, consistently maintaining the highest ADR of all the Hawaiian Islands, and historically being one of the quickest markets to recover given its convenient and increasing airlift capacity.<\/p>\n

Following the recent economic downturn, the\u00a0Maui\u00a0lodging market has demonstrated robust health, with compounded average annual RevPAR growth of 7.1 percent. Year-to-date through\u00a0April 2014, RevPAR growth across the\u00a0Maui\u00a0lodging market is accelerating, and is up 7.6 percent over the same period in 2013.<\/p>\n

The fee-simple property is on 22 waterfront acres on Wailea Beach Marriott adjacent to the Shops at Wailea. Cruse said the company plans a renovation of the hotel in 2015 and 2016 and it will receive\u00a0operational support during the\u00a0planned renovation from Marriott International, the hotel\u2019s manager.<\/p>\n

At an average size of nearly 450 square feet, the hotel provides some of the largest standard guestrooms on\u00a0Maui. It offers 45,000 square feet of flexible meeting facilities featuring three ballrooms, 21 meeting rooms, and significant outdoor oceanfront space that may be entitled for future development.<\/p>\n

\u201cWhile the hotel currently produces superior RevPAR relative to our portfolio average, we believe the hotel\u2019s market penetration, cash flows and long-term value will materially benefit from our asset management process and a carefully planned and executed repositioning program,\u201d Cruse said. \u201cAccordingly, we intend to optimize the Hotel\u2019s 22-acre footprint within this exceptional market by creating a more well-defined, cohesive destination resort experience.\u00a0 This project is highly consistent with our skill set, as our team has deep experience in the development and oversight of comprehensive resort hotel repositioning programs.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"

Sunstone Hotel Investors has entered into a definitive agreement to acquire the 544-key Wailea Beach Marriott Resort & Spa for $326 million, or $598,600 per key, from an affiliate of Blackstone Real Estate Partners IV.<\/p>\n","protected":false},"author":451,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21751,21783,21742,15],"tags":[],"class_list":["post-1004099011","post","type-post","status-publish","format-standard","hentry","category-hotel","category-investment","category-latest","category-west"],"acf":[],"yoast_head":"\nSunstone to Acquire 544-Key Maui Resort for $326M - Commercial Property Executive<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.commercialsearch.com\/news\/sunstone-to-acquire-544-key-maui-resort-for-326m\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Sunstone to Acquire 544-Key Maui Resort for $326M\" \/>\n<meta property=\"og:description\" content=\"Sunstone Hotel Investors has entered into a definitive agreement to acquire the 544-key Wailea Beach Marriott Resort & Spa for $326 million, or $598,600 per key, from an affiliate of Blackstone Real Estate Partners IV.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.commercialsearch.com\/news\/sunstone-to-acquire-544-key-maui-resort-for-326m\/\" \/>\n<meta property=\"og:site_name\" content=\"Commercial Property Executive\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/CPExecutive\" \/>\n<meta property=\"article:published_time\" content=\"2014-06-23T14:21:11+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2022-12-09T10:06:49+00:00\" \/>\n<meta name=\"author\" content=\"Keith Loria\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@cpexecutive\" \/>\n<meta name=\"twitter:site\" content=\"@cpexecutive\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/sunstone-to-acquire-544-key-maui-resort-for-326m\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/sunstone-to-acquire-544-key-maui-resort-for-326m\\\/\"},\"author\":{\"name\":\"Keith Loria\",\"@id\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/#\\\/schema\\\/person\\\/aaa29b723dad85f2444ae3cb0c4d735f\"},\"headline\":\"Sunstone to Acquire 544-Key Maui Resort for $326M\",\"datePublished\":\"2014-06-23T14:21:11+00:00\",\"dateModified\":\"2022-12-09T10:06:49+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/sunstone-to-acquire-544-key-maui-resort-for-326m\\\/\"},\"wordCount\":435,\"commentCount\":0,\"articleSection\":[\"Hotel\",\"Investment\",\"News\",\"West\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/sunstone-to-acquire-544-key-maui-resort-for-326m\\\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/sunstone-to-acquire-544-key-maui-resort-for-326m\\\/\",\"url\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/sunstone-to-acquire-544-key-maui-resort-for-326m\\\/\",\"name\":\"Sunstone to Acquire 544-Key Maui Resort for $326M - 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