MLP sells Ritz site, gets stake in hotel
Maui Land & Pineapple Co. Inc. has sold the land beneath the Ritz-Carlton Kapalua for $25 million and an ownership interest in the luxury hotel as part of a broader plan to reposition the Kapalua Resort.
The Kahului-based company said yesterday it has sold the land to hotel owner Kapalua/ Gengate Holdings Inc. in exchange for a 21.43 percent ownership interest in the last remaining hotel within the resort.
Maui Land plans to invest more than $1 billion to renovate and reposition the entire resort up market with better integration, cooperative marketing and more consistent services, said Teri Freitas Gorman, director of corporate communications.
"Maui Land & Pineapple has been attempting to gain an ownership position in the Ritz-Carlton because we need to include the property to develop a seamless resort experience for our guests and residents," Gorman said. "Obviously with an ownership interest in the hotel, we'll have more of a voice in the decision-making process."
The owners plan to reinvest $95 million for renovations at the Ritz-Carlton, which is set to close for six months starting in July.
In the fourth quarter of 2006, Maui Land's resort segment posted an operating loss of $3 million, up from $1.6 million, while revenue increased 7.9 percent to $11 million from $10.1 million.
Part of the losses were a result of Maui Land closing the Kapalua Bay Hotel to redevelop the property as condominium residences. It acquired a 51 percent stake in the Kapalua Bay Hotel in 2005 and plans to invest $350 million for construction, which is expected to be completed in 2009.
The company is adding resort amenities including a village in the middle of the resort, a new spa and private golf course and walking and biking trails to be completed in 2012. The development includes new residences at Kapalua Mauka, which is anticipated to be a 20-year build out.