KEAUHOU, HAWAII The 521-key Sheraton Keauhou Bay Resort and Spa has been sold for US$26.2 million, or about US$50,000 per key.
The buyer is an affiliate of New York City-based Avenue Capital Management II LP, whose principal owner, Mark Lasry, became chairman of Trump Entertainment Resorts last week. Starwood Hotels & Resorts Worldwide is expected to retain management rights to the property, which would retain the Sheraton flag, and a significant renovation is in the near-term plans.
The oceanfront hotel on the Big Island of Hawaii was taken back by lender Bank of America at foreclosure in January 2010, Honolulu Star-Advertiser reports. About US$60 million in debt was held on the property.
The hotel adopted the Sheraton flag in 2004, following a US$70 million renovation of the former Kona Surf Resort & Country Club, which had closed in 2000.