Blackstone Real Estate plans to sell the 450-room Turtle Bay Resort in Kahuku, Hawaii, to Host Hotels & Resorts for $725 million. The sale of the Oahu North Shore resort should close in the third quarter of 2024.
Blackstone purchased the property from Oaktree Capital Management in 2018 for $332.5 million.
"This transaction is an excellent outcome for our investors and a testament to Blackstone's ability, including through the pandemic, to transform iconic, luxury hospitality assets," Rob Harper, head of Blackstone Real Estate asset management Americas, said in a news release. Under Blackstone's ownership, the resort underwent significant renovations in recent years.
Host Hotels announced the sale price as approximately $680 million, net of key money, according to a company news release. It plans on handing management to Marriott and flagging the hotel with the Ritz-Carlton brand upon closing the deal. As part of the rebranding, Marriott "provided key money and favorable modifications on several existing management agreements," Host said in its news release.
"We are thrilled to enter into an agreement to acquire Turtle Bay Resort, which will further expand and diversify our already strong presence in Hawaii," Host President and CEO Jim Risoleo said in the release.
Host has four hotels and 2,006 guestrooms in Hawaii, including the Fairmont Kea Lani, Maui and Andaz Maui at Wailea Resort, and Hyatt Regency Maui Resort on Maui Island; and Hyatt Place Waikiki Beach in Honolulu on Oahu Island.
Turtle Bay Resort's 2021 renovation updated its guestrooms, lobby, pools, restaurants, meeting space and more back in 2021.
Host Hotels acquired the 215-room 1 Hotel Nashville and 506-room Embassy Suites by Hilton Nashville Downtown for $530 million in an all-cash deal from Starwood Capital Group, Crescent Real Estate and High Street Real Estate Partners earlier this month.
Risoleo said on Host's first-quarter 2024 earnings call that there would be more acquisition opportunities this year following its purchase of the two Nashville properties.
"We're talking to a lot of other folks out there and I'm hopeful — certainly not assured — but hopeful that over the course of the year that we'll be able to get additional transactions completed," he said on May 2.