Wyndham buys Waikiki boutique hotel

Wyndham Vacation Ownership has acquired the Royal Garden Hotel and Spa, a boutique property off Kuhio Avenue in Waikiki.

The Orlando, Fla.-based company bought the property at 440 Olohana St. from Royal Hotel & Spa LLC, owned by Jupiter Holdings Group LLC, and plans to convert the 140-room hotel into time share, the company announced yesterday.

Terms of the deal weren't disclosed.

"We have transferred the property to a company with a tremendous ownership base and respected reputation," said Rick Cho, president of Jupiter Holdings.

Wyndham will keep the hotel open until renovations begin in November, though the company didn't specify how much it is spending on upgrades or when the project would be completed.

The property will be part of the FairShare Plus by Wyndham resort portfolio following a two-phase conversion to studio, one- and two-bedroom units. New amenities will include a swimming pool and sauna, restaurants and fitness center.

"Hawaii continues to be a highly desirable destination for our owners," said Franz Hanning, Wyndham's president & chief executive officer. "We are pleased to acquire a property in an outstanding location as we continue to expand our presence in the Hawaiian Islands."

The property has been unbranded for years. The seller had considered different alternatives including the conversion to condominiums, but decided against it when the condo market began to slow, said tourism consultant Joseph Toy of Hospitality Advisors LLC.

"Certainly a branded owner should give the property more stability and more direction," Toy said.

Wyndham Vacation Ownership, a member of Wyndham Worldwide's family of companies, owns 13 other properties in Hawaii including the Wyndham Waikiki Beach Walk.