California group buys Waikiki Parkside Hotel
By Andrew Gomes
Advertiser Staff Writer
A California investment partnership has bought the Waikiki Parkside Hotel from one of the state's largest real estate management and investment companies.
Manhattan Beach, Calif.-based Laeroc Partners purchased the 255-room, fee-simple property late last week for an estimated $16 million from K.S.K. (O'ahu) LP, a subsidiary of Honolulu-based Hawaiiana Group Inc.
The mid-scale hotel at 1850 Ala Moana, across from Hilton's Kalia Tower, is the second in Waikiki to be owned by Laeroc, which bought the Aston Aloha Surf in 1999.
A Laeroc representative yesterday said that the company is not ready to discuss plans for the property.
Hospitality industry experts expect the hotel, managed by an affiliate of Hawaiiana, to be rebranded and renovated, though they said it is in good condition. Rates range from $125 to $155 a night.
Kelvin Bloom, chief operating officer of Aston Hotels & Resorts, said Aston has discussed managing the Waikiki Parkside, but said he understands that Laeroc is also talking to other hotel operators.
Other industry observers said one of Hilton's mid-priced brands, such as Hampton Inn or Hilton Garden Inn, would fit well with the property and round out Hilton's offerings in the area.
Jay Bloom, president and chief operating officer of Hawaiiana Group and no relation to Kelvin Bloom, did not return a call seeking comment on the Waikiki Parkside sale.
According to local hotel broker Ron Watanabe, the sale was a strategic move involving Hawaiiana's last hotel asset.
Hawaiiana began exiting resort-related enterprises in 1994 and started expanding condominium management, according to the company's Web site.
Over the past several years, Hawaiiana has divested its interests in 13 resort and hotel properties across the state, including the former Maui Inter-Continental Resort bought by Outrigger Enterprises Inc. in 1999.
Hawaiiana and K.S.K. are subsidiaries of Tokyo-based Kenchiku Shiryo Kenkyusha Co. Ltd. In Hawai'i, affiliates of the Japanese firm manage properties valued at more than $6 billion, own real estate and invest in high-tech start-up businesses.
Kenchiku also operates Hawaiiana Management Co. Ltd., the state's largest property management firm, which manages about 270 residential, commercial, retail and industrial properties.
Reach Andrew Gomes at agomes@honoluluadvertiser.com or 525-8065.
