Representatives of Presidio Hotel Group of Fairfield, Calif., owners of the Kauai Coconut Beach Resort in Waipouli, announced yesterday they have obtained $27 million in financing to transform the hotel into Hawai‘i’s first Courtyard by Marriott franchise. Remodeling work is
Representatives of Presidio Hotel Group of Fairfield, Calif., owners of the Kauai Coconut Beach Resort in Waipouli, announced yesterday they have obtained $27 million in financing to transform the hotel into Hawai‘i’s first Courtyard by Marriott franchise. Remodeling work is under way. Manhattan-based lender Ramsfield Hospitality Finance said the loan will be used to renovate the 312-room beachfront resort in Waipouli.
“This transaction represents several ‘firsts’ for our firm,” said Ramsfield President Richard Mandel: “The first time we’ve provided first-mortgage financing, as we typically handle mezzanine loans, and the first Hawaiian property the company has financed. We are extremely bullish on the Hawaiian market, due to its tremendous draw as a key hospitality and tourism destination.”
The announcement means that Marriott’s presence on Kaua‘i will be substantial. Marriott operates Marriott’s Waiohai Beach Club in Po‘ipu and the Kaua‘i Marriott Resort & Beach Club on Kalapaki Bay.
The Courtyard by Marriott will have a restaurant, lounge and lu‘au grounds. Other amenities will include an outdoor swimming pool, spa, shuffleboard, and 5,000 square feet of meeting and banquet space.
During the renovation, which has been quietly underway for the last year, rates are $60 a night. Upon completion of the renovation, room rates will jump into the $150-range. The Presidio Hotel Group acquired the hotel from Pleasant Hawaiian Travel, a family company that owned the property for 20 years.
The Coconut Beach is Hawai‘i’s first Courtyard by Marriott.
The financing pays off a short-term, $23-million bridge loan Presidio used to acquire and renovate the property, and provides extra funds to complete the renovation, which turned out to be more expensive than originally planned, according to a Presidio spokesperson.
Phil Hayworth, business editor, may be reached at 245-3681 (ext. 251) or mailto:phayworth@pulitzer.net.
