The winning bid came in a spirited auction which came down to three bidders once the bids got above $30 million, said Joseph Toy, court-appointed commissioner who ran the sale.
"It was very, very lively," Toy said. The second-highest bid, $37 million, was by a Texas real estate investment trust, Patriot American Hospitality Inc., which will get a chance to buy if Pan Global fails to close the deal.
Unity House, a labor union organization which developed the 313-room hotel at 1956 Ala Moana, bid as high as $30.8 million before dropping out, Toy said.
After the auction, Circuit Judge Daniel Heely confirmed the sale to Pan Global. The purchase also includes an eight-story office building.
Pan Global's attorney, Alan Goda, said the firm is a limited partnership backed largely by Taiwanese financing. Pan Global led the partnership, with California-based Colony Capital Inc. and Hilton Corp., that bought the 1,241-room Hyatt Regency Waikoloa in 1993 and renamed it Hilton Waikoloa Village.
The $37.5 million, plus $1.7 million from last week's sale of a Kahala residential property, will go toward satisfying Japanese lender Mitsui Leasing & Development Co., which brought foreclosure against the hotel's owner, GRC International Co., also of Japan. Mitsui said it is owed $45 million and a group of co-lenders is owed $20 million, for a total debt of $65 million, plus interest.