Woodridge, Oaktree buy Fairmont Orchid

A joint venture between an affiliate of Woodridge Capital Partners, Los Angeles, and Oaktree Capital Management, Los Angeles, has bought the Fairmont Orchid luxury hotel on the island of Hawaii.

The amount of the purchase is not being disclosed, but Paul Hastings LLP reported that it assisted Woodridge and Oaktree in securing a US$78 million loan from an affiliate of Archon Group and Goldman Sachs to finance the acquisition.

The Fairmont Orchid has 538 guestrooms plus five restaurants, four lounges, a renowned spa, a fitness center, large pool and tennis facilities plus 100,000 sq ft (9,290 sq m) of meeting space. The hotel is located on the island’s Kohala Coast.

“The deal came about because both Woodridge Capital and Oaktree have longstanding relationships with investment bankers and others and are often presented with unique opportunities. This is one of those,” said Michael Rosenfeld, Woodridge CEO.

Pacific Business News reported that Westbrook Partners, New York City, which bought the hotel for US$250 million from Fairmont Hotels & Resorts Inc., Toronto, in 2005, turned the hotel over to lender Barclays Capital in a deed in lieu of foreclosure two years ago.

In the past five years, the Fairmont Orchid resort has undergone over US$15 million in renovations to the lobby and guest rooms. The new owners intend to continue the capital improvements with additional upgrades to all guest rooms and common areas and expansion of the spa facilities, for an undisclosed amount. The Fairmont Orchid will continue under management by Fairmont Hotels & Resorts.

The Fairmont Orchid is located on the Island of Hawaii's Kohala Coast.
The Fairmont Orchid is located on the Island of Hawaii’s Kohala Coast.