Coral Reef Hotel to convert to condo

By Andrew Gomes
Advertiser Staff Writer

Hawai'i hotelier André Tatibouet plans to convert his 247-unit Aston Coral Reef Hotel into a resort condominium and sell the leasehold Waikiki property units to individual buyers.

Condo conversion company Hawaiian Island Homes Ltd. said it will release the one- to three-bedroom units for sale on Saturday, at prices ranging from $59,500 to $150,000. The property's ground lease with The Queen Emma Foundation runs until 2050.

The conversion, if it sells out as expected, would raise about $25 million for Tatibouet, the founder and former president of Aston Hotels & Resorts who has been trying to acquire new hotel properties since a falling out last year with Memphis, Tenn.-based ResortQuest International Inc., which bought Aston in 1998.

Upon conversion, unit buyers will have the option to keep their units in a vacation rental program to be managed by Aqua Hotels & Resorts.

Aqua Hotels President Mike Paulin, a former Marc Hotels & Resorts chief executive officer who started Aqua a little more than two years ago and manages three similarly converted properties in Waikiki, said more than 80 percent of buyers typically continue to keep units in the vacation rental program.

Peter Savio, president of Hawaiian Island Homes, said he expects strong interest from an equal mix of Mainland and local buyers based on sales of similar condo hotel conversion projects.

"There's a strong demand for hotel condos," he said. "It's a chance to own a piece of Waikiki."

Tatibouet bought the Coral Reef in 1973, after it was converted from a condo to a hotel. He also owns the Aston Waikiki Beachside, which he redeveloped more than 20 years ago and has been trying to sell and lease back since early 2001.

Reach Andrew Gomes at agomes@honoluluadvertiser.com or 525-8065.