A Denver-based real estate investment and development company plans to enter the Hawaii market with the purchase of the Hotel Hana-Maui & Honua Spa, an award-winning luxury property located on Maui's eastern coast.

Amstar Group LLC said yesterday it expects to take possession of the AAA Four Diamond Award property in May after its deal with the current owner, Ohana Hotel Co., closes for an undisclosed amount. An Amstar subsidiary, Green Tea LLC, will take over management of the iconic 70-room hotel, which opened in 1946 and earned numerous industry accolades last year, including two Travel + Leisure Magazine “;World's Best Awards.”;

“;We are choosing to invest in the Hotel Hana-Maui because we recognize Hana as a special place,”; said Joy Berry, president of Green Tea LLC. “;Our efforts will be focused on travelers who have an interest in 'doing,' offering them a wide variety of activities and providing them with a memorable experience in a memorable place.”;

Approximately 200 hotel workers, some of whom are represented by the Unite Here! Local 5 union, were notified in January that they could lose their jobs as a result of the asset sale. A spokeswoman for the company said workers will be laid off by Ohana when the deal closes and will have to reapply for jobs with Green Tea, which will host an employment fair for displaced workers and community job-seekers in the next few weeks. However, Amstar's immediate repositioning strategy will reduce jobs by eliminating positions and outsourcing.

“;A change in the existing operational model is critical to turning the hotel around and into a viable operation,”; Berry said.

The fate of the hotel, which had gone on the market for between $60 million and $70 million in 2007, had been uncertain for some time. Owners took it off the market in the summer of 2008 when the national credit crunch and global downturn went into full throttle, and San Francisco-based Passport Resorts LLC, the property's minority owner, sold its stake at the beginning of last year to a majority group of California investors in Ohana Hotel. In the last year or so, Hotel Hana-Maui, along with many other neighbor island properties, had seen occupancy drop between 25 and 30 percent.

State Sen. J. Kalani English (R, Hana-East and Upcountry Maui-Molokai-Lanai-Kahoolawe), whose first job was at Hotel Hana-Maui, welcomed Amstar to Maui.

Although Amstar is new to Hawaii, its $2 billion portfolio includes a mix of office, multifamily and hospitality holdings.

“;All of Hana has experienced the uncertainty surrounding the Hotel Hana-Maui's financial condition, and I think we are all extremely satisfied with the plans we have seen for the hotel's future,”; English said.

Although hotel jobs will be lost under the new ownership model, English said following a meeting with Amstar executives that he is “;comfortable that they intend to be good corporate neighbors and focus on having a positive impact on our community.”;