Aloha Tower buyer
gets right to stake
in hotel chain

Trinity is helping
to buy out Rafael Hotels'
largest shareholder

By Rick Daysog
Star-Bulletin

The buyer of Aloha Tower Marketplace's mortgage has received the right to acquire a major stake in a Monaco-based luxury hotel chain.

Trinity Investment Trust L.L.C. yesterday finalized terms of a convertible loan to finance Rafael Hotels Ltd.'s buyout of its largest shareholder, Hong Kong-based HKR Resorts, which owns a 60 percent interest in the hotel chain.

In the deal, Trinity has the right to convert its loan into a substantial equity stake in Rafael Hotels within a year, said Frank Farella, attorney for Rafael Hotels.

The loan amount and the size of the interest covered by the option were not disclosed.

The deal is the latest in a string of high-profile investments by Trinity, which is led by isle hotel developer Charles Sweeney, local attorney Jon Miho and George Ruff, a former executive with VMS Realty.

The company last month purchased the $60 million mortgage to the Aloha Tower Marketplace from Mitsui Trust & Banking Co. for an undisclosed, discounted price and recently acquired an interest in the 413-room Embassy Suites Resort on Maui. It also holds the mortgage for the Harbor Court luxury condominium and office tower downtown.

"Trinity is starting to become a major player out there," said Ernie Watari, chief executive officer of PKF Hawaii, a local accounting and real estate consulting firm. Rafael Hotels, founded in 1986 by former Hawaiian Regent hotel general manager Georg Rafael, owns and manages the Mark, a 180-room upscale hotel in New York. It also has interests in and manages the 300-acre, 340-room Turnberry Isle Resort & Club near Miami and the 224-room Hotel Du Rhone in Geneva, among other hotels.

HKR Resorts is unit of HKR International Ltd., which is a major player in the Hong Kong and mainland China real estate markets.