Outrigger Hospitality Group has revived its plan to acquire ownership of Sheraton Kona Resort & Spa at Keauhou Bay, a 509-room property in a prime oceanfront location on the Island of Hawaii. The transaction is expected to close in late August, at which time the property will be rebranded as Outrigger Kona Resort and Spa.
With nearly 75 years of successful leadership in Hawaii’s hospitality industry and 25 hotels, resorts and vacation condos across the Hawaiian Islands, Outrigger is uniquely positioned to steward this property.
“We are grateful for the opportunity to return to Hawaii Island with a full-service Outrigger resort and share the legacy of this remarkable place in a responsible and sustainable manner,” said Jeff Wagoner, president/CEO, Outrigger Hospitality Group. “The COVID-19 pandemic put this purchase on a brief pause, so we’re glad to be back on track and look forward to welcoming guests to our new home.”
This investment is directly aligned with Outrigger’s strategic business plan to expand its presence in Hawaii and beyond, furthering its mission to be The Premier Beach Resort Brand in the World, according to the company. It recently announced the purchase of three hotels in Southern Thailand which are located on some of the most sought-after beach locations in Asia-Pacific: Phuket, Khao Lak and Koh Samui. The combined acquisitions add nearly 1,000 new rooms to Outrigger’s global portfolio.
The purchase of a new full-service resort in Kona underlines the hospitality company’s deep commitment to its home Hawaii market. Other recent investments include Outrigger Reef Waikiki Beach Resort’s $80 million transformation, which is scheduled for completion at the end of this year, and Waikiki Beachcomber by Outrigger’s $35 million modernization, creating the first “craft” hotel in Hawaii.
“Upon finalization of the sale, we will begin outlining a property modernization masterplan that is aligned with the local culture and further elevates the grounds and guest experience,” added Wagoner. “We are pleased to resume our partnership with landowner Kamehameha Schools and enhance the property in a manner that honors the legacy of this land.”
The 22-acre resort is perched atop lava-rock cliffs and includes an oceanfront pool and waterslide, spa, wedding chapel, cultural center, fitness center, kids club, two restaurants and four indoor meeting venues—including a 10,000-sq.-ft. convention center. The turquoise waters surrounding the resort are home to one of the only places in the world where people can consistently swim with manta rays.