KAUAI, HAWAII Investment firms Behringer Harvard and JMI Realty have jointly acquired the 311-key Aston Kauai Beach at Makaiwa, an oceanfront hotel on the eastern side of the island of Kauai, the northernmost of the Hawaiian Islands. The hotel will be reflagged as a Courtyard by Marriott.
The purchase price was not disclosed. “Aston Kauai Beach at Makaiwa benefits from an excellent location in a desirable market with high barriers to entry,” says Samuel Gillespie, chief operating officer of Behringer Harvard Opportunity REIT II Inc. “We were able to acquire it with favorable in-place financing, at an attractive basis well below replacement cost.”
The hotel was sold unencumbered by management or brand, allowing the new ownership to engage Davidson Hotel Co. to begin managing the asset as of the closing date. From 2003 to 2006, the hotel underwent a multimillion-dollar renovation that included enhancements to many common areas and the complete renovation of all guest rooms. The hotel now offers oversized guestrooms averaging approximately 400 sq. ft.
“We will immediately begin to reposition the hotel to more effectively capitalize on existing demand in today’s market and to benefit from future growth in Hawaii’s tourism industry,” says Richard K. Frank, senior vice president of Behringer Harvard.
The hotel will be known as Courtyard by Marriott Kauai at Coconut Beach.