Blackstone Group LP, the world’s largest hotel owner, agreed to buy the leasehold on the Hyatt Regency Waikiki Beach Resort and Spa for $450 million and plans to remodel the Hawaiian property, which includes a shopping mall, said a person with knowledge of the transaction.
Blackstone is acquiring the ground lease from a venture between Goldman Sachs Group Inc.’s Whitehall real estate funds unit, which owns the majority, and Hyatt Hotels Corp., which will continue to operate the Oahu resort, said the person, who asked not to be named because the sale hasn’t been completed. The leasehold has a term of about 75 years, the person said.
The island of Oahu had the highest hotel occupancy of the top 25 U.S. markets last year, according to STR, a Hendersonville, Tennessee-based hospitality-research firm. The purchase would give Blackstone its second hotel in Waikiki and its fourth in Hawaii, according to the person familiar with the deal. The private-equity firm owns the Hilton Hawaiian Village Waikiki Beach Resort through its Hilton Worldwide Inc. unit.
Peter Rose, a spokesman for New York-based Blackstone, declined to comment on the agreement, which was reported yesterday by Real Estate Alert. Andrea Raphael, a spokeswoman for Goldman Sachs in New York, and Amy Patti, a spokeswoman for Chicago-based Hyatt, also declined to comment.
Blackstone plans to invest about $80 million to renovate the Hyatt Waikiki property, the person said. Besides the hotel’s 1,230 rooms, the leasehold includes three levels of retail space known as the Pualeilani Atrium Shops and restaurants. The deal probably will be completed in July, the person said.