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Opportunistic buyers are assisting and partnering with existing owners of property and debt. The attached article describes one well-known situation of how great properties are being restructured in today’s marketplace. The problem for many owners is too much debt. These opportunistic funds are coming in, paying down the debt and taking an interest, many times a majority and controlling interest, while the current owner takes a reversionary or back-end interest on these transactions. Many participants believe that RevPAR will increase in the next three years and that cash flows will increase greatly from where they are today. This will provide good initial cash flow for new investors.
Archive for the ‘Hawaii Hotels’ Category
2010- The Year of Transition for Hawaii Commercial Real Estate
February 24th, 2010 No Comments
With the release of the Investment Market Report from Colliers Hawaii, both the Honolulu Star Bulletin and the Honolulu Advertiser have posted articles with a brief summary and overview of the Report.
A year of transition: They believe multifamily and retail sectors will recover this year, industrial by the beginning of the next year, office won’t see an improvement until 2011 and it could be as late as 2012 before problems in the hotel sector abate.
Hawaii Hotels: There are currently four Hawaii hotels for sale, and 11 that are distressed or in foreclosure, including the Ilikai, the former W Honolulu Diamond Head, Maui Prince, Fairmont Orchid, ResortQuest Kauai and the Hilton Kauai.
Commercial property sales: Sales have been consistently falling since the market’s peak in 2005, at $4.3 Billion. Last year, it slowed to almost a trickle at $627 million.
To view the full articles, please visit:
Honolulu Advertiser – Commercial property sales fall 20%
Honolulu Star Bulletin – Isle’s real estate is still in distress
If you would like to receive a copy of the various market reports as they become available, please send an email with your contact information here.
Hawaii Hotels – The strong will survive
February 16th, 2010 1 Comment
A few weeks ago, I had an opportunity to play golf with the President of an International Hotel chain here in Hawaii. He reminded me that, although times are very tough at the moment in the hotel business, he is excited for the future.
Hotels in Hawaii
The majority of hotels in Hawaii were able to achieve major investments and upgrades over the past five years because of the good economic times. With their physical plant and furniture fixtures and equipment in such good condition, these hoteliers know that they will have quality product to offer for the next 10 years.
Hawaii Hotel Construction
In addition, this hotelier told me that he does not believe we will see a major hotel under construction in the state for the next 10 years, so that leaves their inventory of rooms and real estate a very valuable commodity.
He expects that in 2011 better hotels across the state will be able to start raising rates fairly dramatically because of the quality of their physical products.
Disney Hotel in Hawaii is already constructed to the 8th Floor
November 27th, 2009 1 Comment
Today, I attended an Economic Development Conference at Ko Olina Resort on Oahu. I was amazed to see that the Disney Hotel had not only broken ground, but is also already up to the 8th floor. This hotel, when completed in 2011, will have over 800 rooms, approximately half of them hotel rooms and the other half time-share rooms, available for sale.
This is the single largest construction project in Hawaii at this time. We are very lucky to have such a strong brand investing such large amounts of money on the island of Oahu during this down-cycle. It’s not only keeping a number of local construction workers employed but also it will employ hundreds of people in the West Oahu area starting in 2011.
Posted in Articles, Development, Hawaii Hotels 
Tags: Disney, hawaii commercial real estate, Hawaii Developments, Hawaii Hotels, Kapolei, Real Estate