Auction date set for
Alana Waikiki

The 313-room hotel and an adjacent building
will be sold to pay off debts

By Rob Perez

Get your millions ready.

A 313-room Waikiki hotel is going on the auction block.

The Alana Waikiki Hotel and an adjacent office building are tentatively scheduled to be auctioned July 31 at a foreclosure sale, according to a Friday ad in the Wall Street Journal.

The hotel and office building are being sold to pay Mitsui Leasing & Development Ltd. and two other Japanese lenders that helped finance the 1989 purchase of the properties.

Mitsui, the main lender, last year sued GRC International Co., the Alana owner, claiming GRC defaulted on a loan now valued at more than $55 million, including interest. A court ordered the foreclosure sale.

Richard Clifton, Mitsui Leasing's attorney, said he doesn't expect his client to fully recover what it is owed.

It isn't clear what the two other lenders, Juso Inc. and Nippon Total Finance Inc., are owed.

Kathleen Kagawa, former Alana president and now a consultant to the hotel, said the sale is not expected to affect guest services. Occupancy is running high - it was more than 80 percent last week - despite the foreclosure proceedings, she said.

GRC purchased the hotel and 40,000-square-foot office building in 1989 for $43 million from Unity House, the nonprofit local labor organization.

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