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Outrigger Kauai
hotel sold

Star-Bulletin staff

The Outrigger Kauai Beach Hotel has been sold for $25 million to Driftwood Ventures Inc. of West Palm Beach, Fla., which plans to replace Outrigger with another management business.

Driftwood has been involved in ownership of over 100 hotels and is looking for other opportunities in Hawaii, said the hotel's new general manager and owner's representative, Tom Rosati.

He said Driftwood plans a $10 million renovation and will keep the hotel open while that is being done.

The 341-room hotel, developed by a partnership led by a Japanese firm now known as Haseko (Hawaii) Inc., opened in April 1986 as the Kauai Hilton. Outrigger Hotels & Resorts replaced Hilton as manager at the beginning of 1993 and the hotel's name was changed to Outrigger Kauai Beach. Now it is the Kauai Beach Resort.

The buyer's broker in the transaction was Wise Hotel Investments Inc. in Corona Del Mar, Calif.