Outrigger selling $92M of its assets in S. Pacific
Hawaii-based hotel operator Outrigger Enterprises Group, which entered the New Zealand and Australia markets in 1998, is selling its resort operations in both countries to an Australian company for $92 million.
The deal with MFS Ltd., a publicly held investment firm, is expected to close by the end of the year.
Included in the transaction are the management, leasing rights and associated real estate interests for the 13 Outrigger-managed properties in the two countries, in addition to management rights for six additional projects under development in Australia and New Zealand.
The rights to using the Outrigger brand are not included in the transaction and the resorts will be renamed. Outrigger, one of Hawaii's major hotel companies, will keep its six properties that are under development in Bali, Fiji, Tahiti and Guam.
"While this was a difficult decision to make, this will support our long-range vision of continuing to strengthen and grow Outrigger, and to position the company as a regional leader in hospitality, retail and development," said Outrigger's president and CEO, David Carey.
Carey said Outrigger will use the proceeds to seek other investments in Australia, New Zealand and elsewhere in the Asia-Pacific region.
Outrigger will continue taking reservations at the affected properties until the transfer of operations is complete. MFS is expected to retain Outrigger employees who agree to work under the new ownership.
"It will be business as usual at all of the properties," Carey said. "We will be working closely with MFS to ensure a smooth and seamless transition to the new management group on behalf of both our employees and our guests."
Carey said that MFS approached Outrigger about the properties as a strategic purchase for its portfolio.
"It's a credit to our ability to create value," he said.
Once the sale is completed, the resorts will be rebranded under MFS' Stella Resorts Group, which include Bale Resorts; Peppers Retreats, Resorts & Hotels; BreakFree Hotels, Resorts & Apartments; and Mantra Hotels Resorts and Apartments.
MFS manages more than $2.9 billion in assets across Australia and New Zealand.
Besides funds management services, MFS owns several tourism businesses, including the PH Sydney Hotel Group and MFS Living and Leisure Group, which operates ski resorts and aquariums.
Outrigger -- which is spearheading the $460 million Waikiki Beach Walk redevelopment project -- currently manages more than 50 properties with more than 12,000 rooms in Hawaii, Australia, Micronesia, Fiji, Tahiti and New Zealand.
OUT FROM DOWN UNDER
Outrigger is selling its resort operations in Australia and New Zealand
Outrigger Heritage Port Douglas
Outrigger on the Beach at Salt
Outrigger Ettalong Beach Resort
Outrigger in the Village Port Douglas
Outrigger on the Inlet Port Douglas
Outrigger Beach Club & Spa Palm Cove
Cairns Resort by Outrigger
Outrigger Hervey Bay
Outrigger Mooloolaba International Beach Resort
Outrigger Sun City Resort
Outrigger Coolangatta Beach Resort
Plus six projects under development
Outrigger at Clearwater Resort, Christchurch
Outrigger at the Beacon, Queenstown
Source: Outrigger Enterprises Group