Blackstone Real Estate Sells Turtle Bay Resort
Inclusive of recent land sale, sale proceeds total $768 million
Blackstone Real Estate today announced that it has reached an agreement to sell Turtle Bay Resort for $725 million. Blackstone purchased the hotel in 2018 for $332 million and subsequently invested significant capital in renovations.
Rob Harper, Head of Blackstone Real Estate Asset Management Americas, said, "This transaction is an excellent outcome for our investors and a testament to Blackstone's ability, including through the pandemic, to transform iconic, luxury hospitality assets. The team executed an ambitious business plan, investing significant capital to reposition the resort for long-term success while also adding high-quality jobs on the North Shore."
With 450 rooms on 1,300 acres along the North Shore of O'ahu, Turtle Bay Resort is one of the area's largest employers and boasts a variety of top-tier amenities. Under Blackstone's ownership, the Resort recently benefitted from a transformative renovation, including the guestrooms and bungalows, lobby, pools, restaurants, retail, meeting space, spa, a new club lounge, building systems, as well as an updated exterior and arrival experience.
The sale is expected to close in the third quarter of 2024.
In a separate transaction, Areté Collective, a vertically integrated development company known for sustainable development practices that prioritize climate resilience, announced the closing of a transaction to purchase 65 acres of land at Turtle Bay on O‘ahu's North Shore.
Inclusive of the recent land sale to Arete and following the close of the property sale transaction, sale proceeds generated on the hotel by Blackstone will total $768 million.
Eastdil Secured, Jones Lang LaSalle and Sumitomo Mitsui Banking Corporation (SMBC) are acting as Blackstone's financial advisors, and Simpson Thacher & Bartlett LLP is serving as Blackstone's legal counsel.
About Blackstone Real Estate
Blackstone is a global leader in real estate investing. Blackstone's real estate business was founded in 1991 and has US $339 billion of investor capital under management. Blackstone is the largest owner of commercial real estate globally, owning and operating assets across every major geography and sector, including logistics, residential, office, hospitality and retail. Our opportunistic funds seek to acquire undermanaged, well-located assets across the world. Blackstone's Core+ business invests in substantially stabilized real estate assets globally, through both institutional strategies and strategies tailored for income-focused individual investors including Blackstone Real Estate Income Trust, Inc. (BREIT), a U.S. non-listed REIT, and Blackstone's European yield-oriented strategy. Blackstone Real Estate also operates one of the leading global real estate debt businesses, providing comprehensive financing solutions across the capital structure and risk spectrum, including management of Blackstone Mortgage Trust (NYSE:BXMT).
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