Turtle Bay Resort plans $35 million upgrade

By Frank Cho
Advertiser Staff Writer

The new owners of The Turtle Bay Resort on O'ahu's North Shore are targeting Hawai'i's lucrative business travel market with a $35 million renovation of the property expected to be complete in September 2002.

The new owners of Turtle Bay Resort on the North Shore have scheduled a $35 million renovation to make it more appealing to business travelers by increasing meeting space, expanding a golf course and adding full-service spa. Advertiser library photo • 1999

"The entire property will be substantially upgraded. However, we are taking a greater approach toward the meetings market," said Jack Schmidt, vice president for sales and marketing at Benchmark Hospitality, a Woodland, Texas, management company that begins management of the property today.

Schmidt said the resort plans to increase its incentive market to reach 50 percent of visitors over the next few years.

Oaktree Capital Management LLC owns the property and is paying for the renovations.

In November, Oaktree settled a year-old lawsuit against local developer Bill Mills, who joined with the California company in 1998 to buy the North Shore resort, sell most of it and split the profits. Oaktree, which lent Mills $52 million for the acquisition, alleged in the suit that Mills received $2 million in kickbacks from the seller and a broker. Mills is no longer involved with the resort.

Benchmark said the hotel's staff will be kept in place. The property was formerly operated by Hilton Hotels Corp.

"We're delighted to welcome Turtle Bay Resort and its staff to the Benchmark family," said Burt Cabanas, Benchmark's chairman and chief executive.

"The property has the capacity to be one of the finest resort destinations in Hawai'i and will compete very effectively in the destination meetings market," Cabanas said.

Reach Frank Cho at 525-8088, or at fcho@honoluluadvertiser.com