Australia's largest hotel and resort operator, Mantra Group Ltd., has bought Outrigger Enterprises Group's interest in the Ala Moana Hotel, where Jack Tyrrell & Company's offices are located and where we have multiple listings. Read more about the purchase in the article by Duane Shimogawa below:
Mantra Group Ltd., the largest hotel and resort operator in Australia, is buying Outrigger Enterprises Group’s interest in the Ala Moana Hotel in Honolulu for $52.5 million, a spokeswoman for Outrigger confirmed to PBN Wednesday.
Outrigger has been marketing its interest in the hotel-condominium, which consists of 1,086 rooms and the hotel's commercial spaces, since early this year.
Mantra Group Ltd., the largest hotel and resort operator in Australia, is buying Outrigger Enterprises Group’s interest in the Ala Moana Hotel hotel-condominium in Honolulu for $52.5 million.
On Tuesday, it entered into a purchase and sales agreement with MG Hotels North Pacific LLC, an affiliate of Mantra Group, which specializes in operating properties similar to the Ala Moana Hotel.
Nancy Daniels, spokeswoman for Outrigger, told PBN that the company was still in the due diligence period, and was unable to provide specific details of the agreement.
“If the due diligence period is successfully completed, we expect the deal to close by late July [or] early August, and that Mantra is committed to retaining our Ala Moana Hotel employees,” she said.
The pending acquisition includes Outrigger's hotel-condo units and six restaurants and bars, as well as nine meeting facilities, the commercial common areas and all the parking stalls at the hotel, which is located at 410 Atkinson Drive, next to Ala Moana Center.
The Ala Moana Hotel, which opened in 1970, has a total of 1,100 rooms, and is one of the largest hotels in Hawaii and sixth-largest on Oahu, according to PBN research. Some of the hotel's units are owned by individual investors.
Outrigger's decision to sell stems from a change in strategy for the company during the past two years to reband itself as the premier beachfront resort company.
“Outrigger has focused increasingly on refining our core Outrigger brand strategy and on aligning our assets and activities with that strategy,” Daniels said. “During that same period, the continued strength of the current real estate and hospitality market has resulted in various unsolicited efforts to acquire our interests in Ala Moana Hotel. Outrigger believes that under the current market situation this is the right time to proceed with a sale in order to strengthen Outrigger overall and over the long-term.”