Outrigger going back to Paulau to manage hotel
A $40 million resort is expected to be built on Koror by 2009
Outrigger Enterprises Group yesterday announced it has agreed to manage a new luxury resort project in the Republic of Palau, seven years after it exited the island nation.
The deal, which was struck with Micronesia Investment and Development Corporation (MIDCORP) and Agora Development Group (ADG), was sealed in November.
The $40 million Outrigger Palau Resort, Spa & Hotel, is expected to be built on a beachfront site on the island of Koror, with a tentative completion date of late 2009.
The new resort will offer 100 luxury hotel rooms, 10 over-water bungalows and 50 condominiums, in addition to restaurants, retail shops, a spa and some event space.
The Republic of Palau, a Micronesian island nation 800 miles southwest of Guam, is known for attracting devoted scuba divers.
David Carey, Outriggers' president and CEO, said the project presents an opportunity to work again with developer Alan Seid and MIDCORP, who in 1995 collaborated with them on the development and construction of the former Outrigger Palasia Hotel Palau.
That hotel, a joint venture between MIDCORP and the Asia Pacific Holding Co. of Taiwan, opened in the summer of 1998. Outrigger exited from management of the 165-room Palasia in November 1999.
Seid, chairman of MIDCORP, said the new project was "right on target with the government's efforts to attract more higher-spending special interest visitors to Palau with the development of first class and deluxe accommodations."
Last year, Palau brought in close to 65,000 visitors, according to Outrigger, the majority of which came from Japan, Taiwan, Korea and China. Travelers from South East Asia, Australasia and Europe have also been on the rise.
The Palau agreement comes on the heels of Outrigger's agreement to sell some 13 resort operations worth $92 million in Australia and New Zealand to MFS Ltd., a publicly-held Australian investment firm back in August.
That deal is expected to close within the next 35 to 40 days, according to Mel Kaneshige, Outrigger's senior vice president.
Outrigger, which is currently completing the first phase of its $535 million Beach Walk redevelopment in Waikiki, also has a presence in Australia, New Zealand, Fiji, Tahiti, Bali and Guam..
