Maui Seaside Hotel in Kahului to be converted to ‘upscale’ Hilton
February 21, 2022, 6:30 AM HST
* Updated February 22, 8:11 AM
California’s ASAP Holdings recently acquired longstanding Maui Seaside Hotel in Kahului and said it will be converted to an “upscale Hilton hotel.”
Located at 100 W. Kaahumanu Ave. next to Maui Beach Hotel, Maui Seaside is a 181-room limited-service hotel with a restaurant and swimming pool. It was founded in 1956.
Colliers’ Structured Finance Advisory secured a $58.07 million loan on behalf of ASAP Seaside Hotel LLC and ASAP Maui Hotel LLC from Stonehill Strategic Capital to purchase the property.
Frank Yuan, CEO of ASAP Holdings, declined to disclose the sales price.
“Again $58.07 million is just the debt, plus our equity and money to convert to Tapestry Collection by Hilton is a sizable investment,” he told Maui Now via email.
Beachfront Maui Seaside is minutes from Kahului Airport and Kahului Harbor. It is popular among business travelers, Neighbor Island residents and visitors looking to stay out of resort areas in West and South Maui, according to a Feb. 8 news release on the acquisition.
Maui Seaside will eventually be converted to a hotel in the Tapestry Collection by Hilton.
Remodeling plans include changing the hotel curb appeal, room upgrades and a complete rebranding.
“The Maui Seaside Hotel offers us a rare value-added opportunity in a high-growth market,” Yuan said in the release. “We plan to spend significant money to convert the hotel to the Tapestry Collection by Hilton brand, the only upscale Hilton hotel in the Maui (area) for their 90 million Hilton Honors to utilize their points for vacation, a huge upside.”
Currently, Hilton only has the Grand Wailea, A Waldorf Astoria Resort hotel on Maui, according to ASAP Holdings website. There are 82 million Hilton Honors members and not many Honors members are willing to pay $1,000 per night at Grand Wailea, the website said.
In an advertising to potential investors, ASAP said Maui Seaside has a minimum 80% occupancy and room rates that jumped 50% after the pandemic.
“Hawaiʻi has seen tremendous leisure travel throughout the recent international lockdowns,” Yuan said in the release. “We expect U.S. leisure travel to continue as the leader for growth as we come out of the pandemic.”
The website said excess land that’s leased to Akamai Motors could be turned into a standalone restaurant.
ASAP Holdings is a privately-held real estate investment company founded in Pasadena, Calif., in 2010. The company focuses on hospitality and commercial real estate throughout the U.S.
In an effort to mitigate the negative impacts of over-tourism, Maui County Council last month placed a moratorium on the construction of new visitor accommodations until the council implements recommendations by a Tourism Management Temporary Investigative Group, or in two years, whichever is sooner.
The rule will not affect existing accommodations or ones that received final approvals prior to the vote.