Joint Venture Acquires The Ritz-Carlton, Kapalua

MAUI, HI—A new joint venture among funds managed by the real estate group of Ares Management, LP, SMW Hospitality, LLC (a JV between affiliates of Square Mile Capital Management, LLC and Wafra Investment Advisory Group) and Trinity Investments, LLC have acquired The Ritz-Carlton, Kapalua here. The resort was acquired from a partnership between Woodridge Capital Partners, LLC and Colony Capital, Inc. Located on 49 acres, the oceanfront hotel is part of the 23,000-acre, master-planned Kapalua Resort.

According to Andrew Holm, managing director in the Ares Real Estate Group, the acquisition “fits squarely in our opportunistic strategy that focuses on development and redevelopment, with planned upgrades to further improve the guest experience for both leisure and group customers. This project continues our long history of partnering with Trinity, which Ares has worked with in Hawaiian hospitality over 20 years on more than $1.2 billion in real estate investments, as well as our longstanding relationship with The Ritz-Carlton’s parent company, Marriott.”

“The Ritz-Carlton is one of Maui’s iconic properties and it’s a welcome addition to our hotel-investment portfolio,” added Managing Director Nolan Hecht of Square Mile Capital Management, LLC, on behalf of SMW Hospitality. “It also represents our entry into Hawaii.”

Sean Hehir, president/CEO of Trinity Investments, noted, “Having invested in hotel properties across Hawaii since our inception, we are intimately familiar with the market’s nuances and demand drivers. This transaction represents a unique opportunity to own a marquee hotel.”

The Ritz-Carlton, Kapalua has 297 guestrooms and 107 condominiums within the hotel. Amenities include a 17,500-sq.-ft. spa, a three-tier swimming pool, a fitness center, a 4,844-sq.-ft. retail arcade, priority access to two championship golf courses, as well as access to other amenities within the resort, including tennis courts, two marine sanctuaries, beaches, shopping and dining. The property also features 32,000 sq. ft. of meeting space. The joint venture plans to renovate the hotel’s common areas and guestrooms.