TORONTO— Fairmont Hotels & Resorts Inc. has agreed to acquire The Orchid at Mauna Lani on Hawaii for approximately $140 million, plus closing costs, from an affiliate of Colony Capital LLC. FHRs management company, Fairmont Hotels & Resorts, will operate the property, which will be officially flagged “The Fairmont Orchid, Hawaii” in December. The transaction, which will be funded with existing credit facilities, is expected to close in December, subject to certain conditions. “FHR has been actively seeking prudent growth in the United States to increase its luxury portfolio. This acquisition is of strategic importance to us,”said William Fatt, CEO. “The Fairmont brand is well positioned in the resort market, in locations with high barriers to entry, and has a strong presence on the west coast. In addition, the guest profile and product quality of The Orchid at Mauna Lani are consistent with those of the Fairmont brand. As a result, we believe it will be a strong complement to our current portfolio…In addition, we should benefit from both cost and customer synergies with The Fairmont Kea Lani in Maui. The Orchid at Mauna Lani has had recent guestroom and public area renovations that are consistent with the standards of the Fairmont brand. This will allow us to focus on further enhancements to improve revenues.” The Orchid at Mauna Lani is situated on 32 beachfront acres along the Kohala Coast, on the Northwestern coast of Hawaii. With 538 guestrooms and suites, the resort offers a full-service spa and fitness center, 42,000 square feet of function space, three restaurants, 10 tennis courts, and is located close to two 18-hole golf courses.
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