Jones Lang LaSalle Hotels Selected to Market Sheraton Keauhou Bay Resort & Spa Upscale Resort Offers Buyers Significant Revenue Upside (United States)
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Jones Lang LaSalle Hotels Selected to Market Sheraton Keauhou Bay Resort & Spa Upscale Resort Offers Buyers Significant Revenue Upside (United States)
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Category: North America & West Indies / Carribean islands - United States - Industry economy -
New brands / Affiliations
This is a press release selected by our editorial committee and published online for free on 2010-01-25
Jones Lang LaSalle Hotels has been selected to exclusively market for sale the 521-room Sheraton Keauhou Bay Resort & Spa in Kailua-Kona on the Big Island of Hawaii on behalf of LB 2006-LLF C5 Kahi Nani LLC.
The Sheraton Keauhou, a 22-acre oceanfront resort, represents an acquisition opportunity for a new investor to benefit from a market recovery and to also implement capital improvements which will enable the resort to further drive average daily rate (ADR) and to close the RevPAR gap with its competitive set.
“The Hawaiian hotel market has demonstrated decades of strong market performance with a thirty year track record of 75% occupancy and 5.4% average yearly ADR increases,” said John Strauss, executive vice president for Jones Lang LaSalle Hotels. “The Sheraton Keauhou is being offered at a significant discount to replacement cost and has undergone a recent $55 million renovation.”
The Sheraton Keauhou offers a variety of amenities such as a 200-foot-long waterslide to more than 75,000 square feet of indoor and outdoor meeting space including the 10,000-square-foot Grand Ballroom and the 19,000-square-foot Keauhou Conference Center. The resort’s four food and beverage outlets present the opportunity to convert the Crystal Blue Lounge to ocean-front dining and the Kai Restaurant to exclusive meeting space with ocean views. The property benefits from its location near the Kona International Airport, its adjacency to the town of Kona, an authentic Hawaiian experience, as well as proximity to the world famous Kohala Coastline of Hawaii.
“There are many value enhancement opportunities for a new owner which include exploiting underutilized space, upgrading the meeting facilities to increase revenue and converting the 205-room Hilo Wing to 68 timeshare units in the future which will generate income from timeshare sales and increase the property’s occupancy due to the decreased key count,” said Arthur Adler, managing director of Jones Lang LaSalle Hotels. “In addition, a new owner will be able to create value through enhanced third party asset management opportunities and operational efficiencies.”
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