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Ritz-Carlton Kapalua
on the Auction Block

Updated 05:21 PM HST, March 9, 2012
Posted 09:20 AM HST, March 7, 2012

Ritz-Carlton Kapalua. Aerial view courtesy of Ritz-Carlton.

By Sonia Isotov

The Ritz-Carlton Kapalua is scheduled to be auctioned off later this year, as part of a collection of assets to be sold by investment bank firm of Lehman Bros.

The Honolulu Star-Bulletin reported today that the 404-room luxury resort will be sold to satisfy creditors of the larger multi-billion dollar bankruptcy of Lehman Bros. The resort could go on the auction block as early as May this year.

Maui Land and Pineapple Inc. originally sold the hotel in 1997 to the partnership of Gencom and Highgate Holdings and an investment fund affiliated with Goldman Sachs, but still retained a small percentage of interest.

Lehman Bros. had issued loans to finance the renovation and condominium conversion plan, but the downturn in the economy caused the owners to default in early 2009. According to the foreclosure lawsuit, this caused them to put the resort up for auction.

It is suggested in the news report that Lehman Bros. could end up the new owners if no one will pay more than they are owned on the loans.

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  • Maui

    Maui Land and Pine did not sell the Ritz~Carlton to Gencom. It was owned by another company. Maui Land and Pine sold the land underneath it and retained a percentage ownership so that the condo portion could be legally deeded.

    • http://twitter.com/Aloha_Analytics Aloha Analytics

      Yeah, that’s what I thought, Lehman did not own the Ritz Carlton outright.  Probably one of the other part owners will buy the interest.

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