Kamehameha buys Keauhou hotel

KAILUA-KONA » A subsidiary of the for-profit development arm of Kamehameha Schools has acquired the Keauhou Beach Hotel on the Big Island from San Diego-based Southwest Value Partners.

Terms of the deal were not disclosed. The buyer, KBH Inc., said it expects a seamless transition. Outrigger Hotels & Resorts will continue to manage operations at the 311-room hotel, which employs nearly 200 staff.

"Outrigger Keauhou Beach Hotel serves as the (Keauhou Resort) gateway, and with this acquisition we bring home the cornerstone of Keauhou," said Greg Chun, Keauhou Resort's president and general manager. "We want to create a business model where cultural sites and educational activities restore Hawaiian presence within our resort."

The 2,400-acre Keauhou Resort master plan, a product of two years of community discussion and research, envisions a community learning center, a gathering place with venues for Hawaiian cultural enrichment programs.

Located five miles south of Kailua-Kona, the resort includes the Outrigger Keauhou Beach Resort, Sheraton Keauhou Bay Resort & Spa, the 22.9-acre Keauhou Shopping Center, two golf courses, timeshare, residential and resort condominiums and single-family residences.

Plans call for restoration or stabilization of two significant heiau and the protection of an additional 100-plus acres of archaeological sites scattered throughout the resort.