Tuesday, December 25, 2001

Oaktree buys Hobron
property for $20 million

By Tim Ruel

The Japan-based owner of the Ohana Waikiki Hobron Hotel completed the sale of the Waikiki property yesterday to a company managed by mainland firm Oaktree Capital Management LLC for $20 million, records show.

Odakyu Hawaii Corp., wholly owned by Odakyu Electric Railway Co., sold the 612-room hotel and the three acres of land under it to Hobron Hotel LLC. Odakyu Electric Railway said Saturday it will liquidate its Hawaii unit by March, according to Kyodo News. Odakyu Hawaii had put the mostly fee-simple Ohana Waikiki Hobron on the market earlier this year at $38 million.

Commercial real estate firm Colliers Monroe Friedlander brokered the deal. "This closing shows it's difficult but not impossible to sell a hotel post-911," said Douglas Pothul, senior vice president of Colliers Monroe Friedlander. Pothul referred further questions to Honolulu attorney Clifford Miller, who could not be reached.

The property, which is near the Hawaii Convention Center, is zoned for apartments, but allows for the hotel, which was formerly the Outrigger Hobron.

Oaktree, based in Los Angeles, owns the 485-room Turtle Bay Resort on Oahu and is spending $35 million to renovate that property. Oaktree also acquired an interest in Liberty House during the retailer's three-year bankruptcy proceedings and sold the company to Macy's in July.

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