$95 million Mortgage Lender Bid prevails in sale of Makena Beach & Golf ResortJuly 14, 2010, 5:54 AM HST · Updated July 14, 5:54 AM 0 Comments
Maui Circuit Court Judge Shackley F. Raffetto yesterday confirmed the sale of The Makena Beach & Golf Resort. The lender group prevailed with a bid of $95 million after Judge Raffetto agreed to reopen the bidding at the confirmation hearing Tuesday morning to allow two additional bidders the opportunity to bid on the Resort. Completion of the final documentation of the sale is expected within 45 days.
With the confirmation now complete, ownership of the property will transition from court receivership to the new owner. Company officials anticipate no interruption in operations at the property through the ownership change and resort staff will continue to accept reservations and welcome guests and visitors to the hotel.
“This is very positive news for the Makena Beach & Golf Resort, its employees and the Maui community. This lender has shown and continues to show that it is very committed to this property,” said Christopher Lau, the commissioner appointed by the court to handle the auction and sale. “The Resort has not only remained open without disruption throughout this process, but has in fact substantially improved its performance and quality of service to its visitors. The lender has invested millions of dollars over the past 9 months, and continues to invest for the future,” said Lau.
Willie Kennison, Maui director for the ILWU that represents the majority of employees at the Resort, said, “We feel very positive about this outcome. We have talked to representatives of new ownership and we know they are really committed to Makena and to Maui. That is good news for employees and good news for our island guests,” said Kennison.
Miles Furutani, the court-appointed Receiver over the past year, noted, “all hotel and recreational activities have dramatically improved despite the foreclosure process. Occupancy is now more than double what it was a year-ago, the Resort is in better condition and morale is high since we were able to rehire most of the employees who had been let go when the prior owner went into default on its debts. The lender group continues to prove to me that they are committed to being here for a very long time,” said Furutani.
At the commencement of the foreclosure process in September 2009, Benchmark Hospitality took over hotel operations and will continue to operate the Resort through the transition to new ownership.
The Makena Beach & Golf Resort, formerly known as the Maui Prince Hotel, is a 310-room hotel on 1,800 acres located on a secluded beach on the southwestern Maui coast.
(Posted by Wendy Osher; courtesy info.)