The Blackstone Group has purchased a full-service Hawaiian resort for a rumored $450 million. The New York-based private equity and real estate giant has bought the leasehold interest in the Hyatt Regency Waikiki Beach from a joint venture between Goldman Sachs’ Whitehall Street Real Estate funds and Hyatt Hotels, according to Real Capital Analytics.
Blackstone is anticipated to invest an additional $75 million in renovating the property, which is located at 2424 Kalakaua Avenue in Honolulu. Although representatives from Blackstone declined to comment, it is understood that the firm acquired the asset on behalf of its $13.3 billion Blackstone Real Estate Partners (BREP) VII global opportunity fund.
Originally built in 1976, the two-building, 1,230-room resort was renovated in 2004. The Goldman-Hyatt venture purchased the property from Azabu Buildings for $413.3 million in 2008. According to media reports, the resort will retain the Hyatt brand.
Blackstone is one of the world’s largest hotel owners. In May 2012, the firm acquired hotel operator Accor’s Motel 6 budget chain of North American hotels for $1.9 billion on behalf of BREP VII. The biggest hotel deal that Blackstone was involved in took place in 2007, when the firm bought global hotel chain Hilton Hotels for $20.1 billion.