Foreclosure commissioner Joseph Toy said today that eight businesses met a qualification deadline yesterday, including the Texas real estate investment trust that had an earlier high bid of $18.5 million.
That bid and a lower one by Unity House, a Honolulu labor organization that originally developed and operated the hotel, were considered too low.
Toy has said the first bids are normally conservative in such cases and the law allows more bids later if anyone is willing to offer at least another $500,000.
The Japanese lender that brought the foreclosure action to force the sale says it is owed $55 million in principal and interest and other businesses expressed interest in making higher bids than those previously made.
Circuit Court Judge Daniel Healy reacted by ordering a new round of bidding that will take place in his court Sept. 9.
The first high bidder, Patriot American Hospitality Inc., and Unity House are among the eight who qualified to bid in the new round, Toy said. Each had to show that it had $5 million immediately available and two bank references.
He declined to name the possible bidders because the court has not yet been told who they are. Toy said they include both American and foreign concerns. "It's a very interesting group," he said.
Mitsui Leasing & Development Ltd., which lent $45 million to another Japanese business, GRC International, to finance GRC's 1989 purchase of the hotel, forced the sale through a foreclosure suit after GRC defaulted on the loan payments.
The sale covers the hotel at 1956 Ala Moana and an attached eight-story office building, part of which is used for hotel offices and meeting rooms.
Renewed interest in the property could be related to its location, near both Fort DeRussy and the Hawaii Convention Center site, observers say.
Meanwhile, in a related matter, bids will be heard Sept. 3 for a 20,000-square-foot residential lot fronting Kahala Beach, Toy said. The property was pledged as part of the collateral in the defaulted Waikiki loans that forced the sale of the Alana.