Real estate firm buys Ritz-Carlton Kapalua on Maui

A view of the signature pools, with the Pacific Ocean behind it, at the Ritz-Carlton Kapalua on Maui. The property has just undergone a $160 million renovation. Photos from the Ritz-Carlton Kapalua.
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WAILUKU — The Ritz-Carlton Kapalua on Maui has been sold to an affiliate of the same investment group that purchased the Grand Wailea resort earlier this year.

Blackstone Real Estate Partners, an affiliate of Blackstone Group, closed this week on the 49-acre property that includes a 297-room hotel and 107 condominium residences.

Terms of the deal were not disclosed.

A joint venture that included Ares Management, SMW Hospitality and Trinity Real Estate Investments had purchased the property in 2016 for about $210 million, according to a Colliers International report.

The venture spent about $30 million in improvements to rooms, condos, the lobby and restaurants, the resort said earlier this year.

“We believe the outcome of this transaction reflects the significant value we were able to create over the hold period,” Sean Hehir, a managing partner for Trinity Investments, told The Maui News. “The deal is a perfect example of how we leverage our intimate local market knowledge and proven platform to generate compelling risk-adjusted returns on invested capital.”

The resort was built in 1992 by Maui Land & Pineapple Co, and it sold in 2006 to a joint venture that included the Gencom Group. Following major renovations in 2007 and then the recession, Gencom defaulted on its loan. Lenders foreclosed on the property in March 2011 with about $268 million owed.

Lehman later obtained the property and sold it to Woodridge Capital Partners and Colony Capital in February 2014 for $142 million, according to a Colliers International report.

A Blackstone Group company purchased the 776-room Grand Wailea on Maui in April for a reported $1.1 billion.