Denver-based private equity group KSL Capital Partners has acquired Hawaiian chain of Outrigger Hotels & Resorts—which operates, owns or manages 37 hotels in Hawaii, Guam, Fiji, Thailand, Mauritius and Maldives—for an undisclosed price. Outrigger has been owned and operated by the Kelley family for 69 years.
“KSL has the capital capacity to elevate Outrigger to the next level—infusing additional resources into our current assets and helping to accelerate our long-term growth goals,” W. David P. Carey, president of Outrigger Enterprises Group, said in a statement. Carey, who is married to the former Kathy Kelley, the granddaughter of Outrigger founders Roy and Estelle Kelley, will continue as the company’s president and CEO. “It’s my intention to stay here. I’m not done yet. I’ve got runway left and I’d like to do some successful things,” Carey told the Honolulu Star-Advertiser.
The transaction is expected to close in 60 to 90 days. When it does, business is expected to continue as usual, with the company’s name kept intact and its headquarters remaining in Waikiki.
However, the deal reportedly puts the planned $100-million renovation of the Outrigger Reef on hold while KSL evaluates the best direction for the property, which Outrigger owned in fee simple.
“Outrigger is a well-established, highly successful company that has built a unique portfolio of world-class hotels,” Marty Newburger, partner at KSL, said in a statement. “For nearly seven decades, the Outrigger team has been focused on providing authentic, localized experiences for guests in iconic resort destinations. We are excited to continue the strong tradition that the Kelley family has built.”
Last year, Outrigger sold the management rights to four Queensland hotels to Mantra for "an aggressive" $29.5 million.