Waikiki hotel goes condo
The Waikiki Terrace joins the list
of hotels being turned into residential properties
WAIKIKI, Oct. 29, 2003 -- Renovations are under way on an $11 million upgrade converting the Waikiki Terrace Hotel into an upscale condominium.
The Waikiki Terrace Hotel is just one of many hotels in Oahu ’s prime tourist district to be converted into condominiums recently. With the residential real estate market continuing to boom, the conversion of hotel properties into residential condominiums and rental units seems to be taking off in Waikiki. The properties, many with ocean views, are attracting investors, as well as owner occupants and those looking for long- and short-term rentals.
When the visitor market dropped and beachfront hotels cut rates, revenue pressure was put on off-beach hotels. More tourists began choosing to spend their dollars on luxury beachfront properties, and some older off-beach Waikiki properties found themselves at a disadvantage for capturing their share of the market. But many of these property owners have discovered low interest rates and a shortage of rental units have created the ideal conditions for conversions.
Ownership of the property, which is adjacent to Fort DeRussy Park at 2045 Kalakaua Ave., is slated to change in December from Max Holdings Inc. to Waikiki Terrace LLC, a newly formed Honolulu-based limited liability company whose members include affiliates of the National Housing Corp., Brian Anderson and Max Holdings. Terms of the sale were not disclosed.
Owners of the Waikiki Terrace Hotel plan to convert the 242-room hotel into a 217-unit condominium comprised of 186 studio suites, 29 one-bedroom suites and a couple of two-bedroom suites. Renovations, which will include architectural conversions as well as new furnishings and fixtures, is expected to be completed by June 2004. Plans also call for exterior painting and renovations to the lobby, mezzanine level, fitness room and pool deck.
The hotel will be re-branded the Outrigger Luana Waikiki in April 2004. Plans are to market the property under Outrigger’s Condominium Collection, which consists of 10 condominium resorts on Oahu, Maui, Kauai and the Big Island.
While the property is undergoing renovations, it will remain open for hotel business and will continue to take reservations, likely at reduced rates, said Jim Austin, spokesman for Outrigger Hotels and Resorts, the company that will be managing the converted property. Rental and purchase prices for the converted condominium units have not yet been disclosed, Austin said. http://starbulletin.com/breaking/breaking.php?id=2067
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