A Waikīkī hotel is on the market.
Built in 1972, you can find ‘Ewa Hotel Waikīkī on 15,000 square feet of leasehold land at 2555 Cartwright Road. That's on the east end of Waikīkī near the Honolulu Zoo and Kapi‘olani Park and not far from the beach.
The property is being marketed by a CBRE team that includes Senior Vice President Yasuyuki Kojima and Vice President Andrew Reenders.
According to the listing website, the hotel, which has a total of 92 guest rooms, is currently managed by Aqua Aston Hotels & Resorts, but can be "delivered unencumbered."
Kojima told Aloha State Daily Wednesday that 92 is a "relatively small number of units" and could fit the bill for a boutique hotel.
It's a "select service hotel," he noted, and said there's no pool or food and beverage service. But Reenders says that there is an eighth-floor rooftop deck with some ocean views.
"It's a nice value-add opportunity for someone to come in with some new capital to reinvest in it, renovate, possibly rebrand it and get the ADR [average daily rate, or the room rate] up closer to where the market would be for a newly renovated off-beach property," he told ASD.
"The hotel is being offered unencumbered by brand and management affiliation providing the opportunity to completely reposition and rebrand the hotel in a marketplace experiencing high revenues," the site states.
They're targeting a $21 million sale price.
Kojima says they're marketing the hotel not only to investors from the U.S. Mainland, but Asian markets as well, including Japan, Korea, Hong Kong, Taiwan and Singapore.
Fifty years remain on the ground lease, "with known rent through 2045, avoiding any rent re-openings and removing uncertainty," the site notes.
"It's a very favorable lease, too," Reenders says. "It's well-written."
The team began marketing the property earlier this month and say they've seen a strong response so far.
Only one Waikīkī hotel sold last year, Reenders said.
"It's very rare for Waikīkī hotels to come to market like this," he said. "It's a highly sought after as an asset."
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Stephanie Salmons can be reached at stephanie@alohastatedaily.com.
