W hotel The W Honolulu Diamond Head, a small luxury hotel aimed at the business traveler and the high-end leisure market, is for sale at an asking price of $9.8 million.
on the market
The high-end property
on Kalakaua Ave. is
listed for $9.8 millionBy Russ Lynch
rlynch@starbulletin.comThe 13-story hotel, at 2588 Kalakaua Ave., was the Colony Surf until Starwood Hotels & Resorts Worldwide took over the management in October 1999 and renamed it. The hotel went through a $10 million renovation in 1997 and was improved some more before Starwood came on board.
Realtor Mark Bratton, who has the listing at the commercial real estate firm Colliers Monroe Friedlander Inc., was not available for comment yesterday and an assistant there said he was unable to disclose the name of the owner. When Starwood took over the management, the building was owned by Los Angeles-based Colony Capital Inc.
According to a Colliers listing notice, the hotel stands on 11,848 square feet of fee-simple land and 16,598 square feet leased from several family trusts. The hotel across from Kapiolani Park has 46 studio units, two suites overlooking the ocean and a 2,542-square-foot penthouse suite. There is also a restaurant on the second floor, the Diamond Head Grill.
In an advertisement, the Colliers firm said the hotel was 80.2 percent occupied in 2000 and 77.8 percent last year and is expected to run 75.7 percent full this year before passing back above 80 percent in 2003. The hotel has been bringing in about $163 a day in revenues per available room this year but that is also expected to rise next year.