After years of changing hands, Blackstone Group to acquire the Grand Wailea on Maui.
The Grand Wailea was built in 1991 by billionaire Japanese developer Takeshi Sekiguchi. As you may recall, Sekiguchi is also the developer behind Honolulu’s exclusive Vintage Cave.
The majestic 40-acre property in Maui’s exclusive Wailea Resort cost $650 million, or nearly $1.2 billion in today’s money. However, thanks to the bursting of Japan’s economic bubble, Sekiguchi had to part ways with the property after only a few years of ownership. And since 2006, the property has been managed by Hilton under the Waldorf Astoria brand. In fact, the Grand Wailea was the first property to join the brand named after the famous New York hotel.
However, over the years, the Grand Wailea has continued to change hands, and this latest sale is just one of many. Hopefully, though, this sale will be for the best.
Current Owners
Currently, the Grand Wailea is owned by The Government of Singapore Investment Corp who acquired it back in 2013, along with three other U.S. resorts, for $1.5 billion. And, recently, the Grand Wailea underwent a massive pool renovation project. No other part of the property, though, has been touched during this renovation project.
Blackstone Acquisition
Singapore’s sovereign wealth fund, according to the Pacific Business News, is selling the Grand Wailea to Blackstone for $1.1 billion. That’s over three times the price Blackstone recently agreed to pay for Oahu’s Turtle Bay. However, two years ago Blackstone also sold the Hyatt Regency Waikiki for $780 million.
The thing with Blackstone, though, is its history with turning around properties in Hawaii. They’re not necessarily in the business of keeping a portfolio of properties. Rather, they usually purchase a hotel, fix it up, and sell it for much more than they spent. And I’m hoping that’ll be the case with the Grand Wailea. While it’s a great property, it does look a bit dated, especially the rooms. So it would be nice to see the Grand Wailea modernized while also keeping its character. And I think the Blackstone Group is the company that can accomplish this.
Blackstone Group to Acquire the Grand Wailea, Final Thoughts
As I said earlier, the Grand Wailea’s acquisition of the Blackstone Group is, potentially, a very good thing. If they can take this already great property and improve on it, then everyone wins. What will ultimately happen, though, remains to be seen. This is just one of many projects Blackstone will have in Hawaii. And, I’m interested to see what becomes of all of them. After all, all of these properties have potential.