Australia's Mantra Group is buying Outrigger Enterprises Group’s interest in the Ala Moana Hotel in Honolulu for $52.5 million.
Outrigger has been marketing its interest in the 1,086-room condo-hotel since early this year. The decision to sell reportedly stems from "a change in strategy" over the past two years.
“The continued strength of the current real estate and hospitality market has resulted in various unsolicited efforts to acquire our interests in Ala Moana Hotel,” a spokesperson for the hotel said. “Outrigger believes that under the current market situation this is the right time to proceed with a sale in order to strengthen Outrigger overall and over the long-term.”
Earlier this week, it entered into a purchase and sales agreement with MG Hotels North Pacific LLC, an affiliate of Mantra Group, which specializes in operating properties similar to the Ala Moana Hotel. The company is still reportedly in the due diligence period of the deal; as such, specific details are unavailable. However, the spokesperson said that the deal is expected to close later this summer.
The acquisition includes Outrigger's hotel-condo units and six restaurants and bars, as well as nine meeting facilities, the commercial common areas and all the parking stalls at the hotel.
The Ala Moana Hotel is one of the largest hotels in Hawaii and sixth-largest on Oahu. Some of the hotel's units are owned by individual investors.
Source: Pacific Business News