Outrigger Hotels & Resorts is Hawaii’s largest locally owned hospitality company; Aqua Hotels & Resorts is the second largest. Founded in 1947, by Roy and Estelle Kelly, the company has grown its collection of properties over the years. Today, Outrigger has 37 properties across the Hawaiian Islands and the Asia Pacific region. Now, however, the hospitality company is changing hands: Outrigger to be sold to Colorado Company.
According to Pacific Business News, Outrigger Hotels & Resorts is being sold to a Colorado-based private equity firm, KSL Capital Partners. How much KSL Capital Partners paid to acquire Outrigger has not been disclosed, and the deal still needs to be voted on by shareholders of both companies.
Despite ownership of Outrigger changing from Hawaii to Colorado, Outrigger will continue to be headquartered in Hawaii. Outrigger’s current CEO, David Carey, will retain his position, too. And it’s safe to say that things will be business as usual once the sale closes. In fact, it’s been hinted that Outrigger will be improved with the financial strength and backing of KSL Capital.
To me, this is great news. While Outrigger does have some great looking properties, a large majority of its properties aren’t so great. That’s not to say they’re bad… Many just need some improvements. In fact, many of Outrigger’s properties look pretty good. But, often, though the properties look nice, they could use a deeper level of work than simple cosmetic changes. And if KSL Capital does make the necessary investments, there’s an opportunity to turn some of these properties into truly great ones.
Looking at Outrigger’s newer properties in Fiji, the Maldives, and Mauritius, the future does look promising. Outrigger had even joined a global hotel alliance recently. Though, only 9 of Outrigger’s best properties were included with the alliance. But still, it’ll be interesting to see how Outrigger evolves.