Outrigger Hotels and Resorts, Honolulu, owned and operated by the Kelley family for 69 years, is selling its 37-property portfolio to KSL Capital Partners, Denver, for an undisclosed amount. The transaction includes Outrigger’s multi-branded portfolio of hotels, condominiums and vacation resort properties.
“As one of the world’s leading investors in hospitality, 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,” said W. David P. Carey, president and CEO of Outrigger Enterprises Group, who will remain in his current role at the current headquarters.
The Honolulu Star Advertiser reported on Wednesday that Carey’s direct reports, including Paul Richardson, Sean Dee, Ruthann Yamanaka, Ed Case and Mike Regan, also are expected to remain with the company. The deal comes with an agreement to protect the company’s 4,500 employees “for the foreseeable future,” Carey said.
Carey also said that it’s “likely” that other Kelley family members involved in the hotel business, including Bitsy Kelley, Charles Kelley, Richard Kelley and Jean Rolles, would not continue under the new owner.
“Since my grandparents – Roy and Estelle Kelley – founded Outrigger in 1947, our family-run hospitality business has created world-class vacations for millions of travelers and life-changing employment opportunities for our hosts,” said Dr. Charles Kelley, board chairman of Outrigger Enterprises Group. “Our family is humbled to have had the privilege of leading this company for nearly 70 years and to have worked with some of the best in the industry. We have a responsibility to make strategic decisions today that put our company on the best path for future success; we are confident that KSL will make Outrigger more resilient in today’s global hospitality market.”
Outrigger currently operates or has under development 37 properties with approximately 6,500 rooms located in Hawaii (Oahu, Maui, Kauai, Hawaii Island); Guam; Fiji; Thailand; Mauritius; and the Maldives.