The Bratton Team

Mainland company enters agreement to acquire Turtle Bay Resort

Maryland-based Host Hotels & Resorts, Inc. has entered into an agreement to acquire Turtle Bay Resort on the North Shore of Oahu, with plans to rebrand it as a Ritz-Carlton, according to representatives of the company. The sale is expected to close in late July.

The prospective buyer, Host Hotels & Resorts, Inc., listed the price as approximately $680 million, which includes $630 million for the resort and an additional $50 million for an undeveloped 49-acre land parcel. Blackstone Real Estate, the current owner, has announced the agreement to sell the resort for $725 million, and that 65 acres of land will be sold to Areté Collective in a separate transaction, bringing the total sale to $768 million, according to representatives of the company.

Turtle Bay Resort, which has 450 rooms, is located on about 1,180 acres and has five miles of beach and coastline views, according to representatives of Host Hotels & Resorts. Once the sale closes, Host Hotels & Resorts said it would transition management to Marriott International, which owns The Ritz Carlton brand.

“We are thrilled to enter into an agreement to acquire Turtle Bay Resort, which will further expand and diversify our already strong presence in Hawaii,” said James Risoleo, president and CEO of Host Hotels & Resorts, in a written statement. “Oahu is a high demand leisure destination with consistently high occupancy, an internationally diverse demand base, and high barriers to entry, resulting in slightly negative supply growth historically and essentially no anticipated near-term supply.”

Host Hotels & Resorts is an S&P 500 company with 74 properties in the United States and five international properties. The company already owns properties in Hawaii, including Hyatt Place Waikiki Beach on Oahu; and three on Maui: Fairmont Kea Lani, Maui; Andaz Maui at Wailea Resort and Hyatt Regency Maui Resort and Spa, according to its website. The company’s properties, combined, have about 42,700 rooms, according to representatives of Host Hotels & Resorts.

Turtle Bay Resort recently underwent renovations and was closed from March 2020 to June 2021, as noted by Host Hotels & Resorts in the announcement. The amenities at Turtle Bay Resort include 18,000 square feet of indoor meeting space, a club lounge, six food and beverage outlets, seven retail spaces, a spa, fitness center, two golf courses, seven beaches, four resort pools, tennis and pickle ball courts, an equestrian center, a working farm and access to 12 miles of oceanfront trails.

“This transaction is an excellent outcome for our investors and a testament to Blackstone’s ability, including through the pandemic, to transform iconic, luxury hospitality assets,” said Rob Harper, head of Blackstone’s Real Estate Asset Management Americas, in a written statement. “The team executed an ambitious business plan, investing significant capital to reposition the resort for long-term success while also adding high-quality jobs on the North Shore.”

Turtle Bay Resort recently was featured on Pacific Business News’ List of Hawaii Hotels, Oahu, which is ranked by the number of rooms. For more information about Turtle Bay Resort, go here: turtlebayresort.com.

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