The deal comes 2 monthsBy Russ Lynch
after it took over management
of the 516-room resort
Outrigger Enterprises Inc. said today it will buy the former Maui Inter-Continental Resort for an undisclosed price.
The announcement comes about two months after the Hawaii company's operating arm, Outrigger Hotels & Resorts, was awarded the management contract for the 516-room beachfront resort on 22 acres of beachfront land at Wailea. Outrigger said it has reached an agreement to buy the fee-simple property from MI Hotel LP, which bought it in March 1993 for $111 million.
Aston Hotel & Resorts leased the hotel from the owners in February 1996 and took over the management but left after its three-year lease ended.
David Carey, president and chief executive of Outrigger Enterprises, said the acquisition is in line with Outrigger's goal to operate more full-service beachfront hotels on the major islands. The company's aim is to operate "four-star hotels in all of the key Pacific destinations," Carey said.
Neighbor island acquisitions bring a better balance to the company's portfolio, which has been heavily concentrated in Waikiki, Carey said. Outrigger is also expanding through management contracts on island in the Pacific and in Australia.
In a separate announcement, Outrigger Hotels & Resorts said it will take over management of the Lae nani resort condominium on Kauai on Feb. 1. The 82-unit complex in five low-rise buildings on the beachfront at Wailua has been managed by Village Resorts.