Date: November 2018
Location: The island of Kauai in Hawaii, USA
Name: (St. Regis) Princeville Resort – to be re-branded 1 Hotel Hanalei Bay.
No. of Keys: 251
Seller: The acquisition price was not disclosed, but LACERA (Los Angeles County Employees Retirement Association) purchased the properties in 2005 for $93.7 million, according to Kauai County tax records. An internal listing of all of LACERA’s real estate holdings, dated Sept. 30, 2017, put the current value of the St. Regis/Makai Golf complex at just under $212 million.
The St. Regis was the only hotel owned by LACERA and, by virtue of being in a remote location in Hawaii, is far removed from LACERA’s other operations, based in Los Angeles County, where its members include a broad range of more than 35,000 county employees, from highway workers to sheriff’s deputies.
It also handles pension arrangements for the Los Angeles Superior Court, which used to be a county agency before it was transferred to the jurisdiction of California state government. LACERA manages assets of $56.8 billion, according to its 2017 annual report.
The hotel has long been a favorite Kauai destination for Los Angeles County public employees, who receive a preferential rate of $250 per night — far less than half of the so-called “rack rate.”
Starwood Capital Group’s hotel management company, SH Hotels & Resorts, will operate the hotel effective immediately as Princeville Resort.
East West Partners, a long-time collaborator with Starwood Capital Group, will partner in planning and development. “We are very proud to have the opportunity to be a part of this incredible project and look forward to partnering once again with Starwood Capital Group,” said Harry Frampton, Founder of East West Partners.
Starwood intends to invest more than $100 million to transform the property into what will surely be the 1 Hotel brand’s flagship resort, 1 Hotel Hanalei Bay.
1 Hotels can currently be found in Manhattan, Brooklyn, New York and South Beach, Florida.
The brand will continue its rapid expansion with soon-to-open properties in West Hollywood, Cabo San Lucas, Sunnyvale and Sanya, China and there are more than a dozen others in the company’s pipeline.
Princeville Resort sits in perhaps one of the world’s most astonishingly beautiful settings.
Known as “The Garden Island,” Kauai is simply breathtaking as is the resort’s location, overlooking the world-famous, pristine Hanalei Bay, with the spectacular Na Pali Coast and its cascading waterfalls over moss-covered cliffs.
The resort will feature a world-class wellness centre, oversized fitness area with both indoor and outdoor programming, and a diverse activity centre.
“We are just thrilled to have this opportunity to acquire and create what will surely be one of the most incredible resort properties in the world, 1 Hotel Hanalei Bay,” said Barry Sternlicht, Chairman of Starwood Capital Group.
Princeville guests have preferential access to the renowned Princeville Makai Golf Club, named #3 Golf Course in Hawaii by Golfweek and “Top 5 Great Golf Settings” by National Geographic Travel Magazine.
THPT Comment: The 1 Hotel brand is interesting, from funky in NY to pure luxury in Hawaii. They refer to eco-conscious design…would like to know about that in their plans for this hotel.
First Seen: The Garden Island
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