The purchase price for the property is approximately $140 million plus closing costs and will be funded with existing credit facilities. The transaction 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, commented William R. Fatt, chief executive officer of FHR. 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.
Mr. Fatt continued, We have the necessary capabilities to improve the performance of this property. Our strength in the luxury group market provides the potential for future revenue growth, as we capitalize on the resort’s extensive meeting space. 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 was named to Conde Nast Traveler’s 2002 Gold List alongside 21 of Fairmont’s hotels and resorts. The property was also called ‘one of the best golf resorts’ by Conde Nast Traveler’s 2001 Top Golf Resorts readers’ survey and was a 2001 Conde Nast Traveler Readers’ Choice award winner.
The resort is situated on 32 beachfront acres along the semi-tropical 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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