Condo sale draws early birds
By Kelly Yamanouchi
Advertiser Staff Writer
A line of potential buyers formed outside the Bamboo Hotel in Waikiki yesterday, the day before the building's 95 units were put up for sale as fee-simple condominiums.
The 13-story Kuhio Avenue hotel, behind the Hyatt Regency Waikiki Resort and Spa, is the latest hotel to start selling rooms as condominium units. Sellers hope to benefit from the strong demand for condominiums in the Honolulu real estate market.
The units are small, starting at 289 square feet, including the lanai. And prices start at $107,000 with a $211 maintenance fee.
Jonathan McManus, a partner of BAYWEST, the real estate investment firm that owns the hotel, said he expects all units to sell in about a week.
The new owners can rent their units through the hotel, which is marketed and operated by Aqua Hotels & Resorts. Buyers can also choose any other management company.
McManus said the Bamboo is on the front-end of a string of hotel conversions to condominiums, which "in the end will do Waikiki a great service."
Assuming some owners live in the units, the conversion will reduce the number of hotel rooms in Waikiki and help to boost the rates on remaining rooms, a key goal of hoteliers and the tourism industry.
Owner-occupants may also upgrade their units and their building, McManus said. "There will be a certain sense of pride of ownership," he said.
"This trend should bode well for Waikiki, gentrifying on par with more metropolitan areas such as South Beach Miami," McManus said.
Hawaiian Island Homes Ltd., run by Peter Savio, is handling the sales contracts. Those lining up Monday and yesterday were "preferred" clients of Hawaiian Island Homes, from a mailing list of about 7,000, who get first opportunity to buy the units today, Savio said.
Savio said he expected the units may sell out today. If they don't, they will be sold to the public, starting Saturday.
"It's a nice little property," Savio said. The room rates at the Bamboo range from $145.00 to $750.00 per night and the occupancy rate has been above 90 percent for the past year, according to BAYWEST.
BAYWEST bought the property in 2000. The property was previously known as the Waikiki Marc and was renovated in 1991.
Reach Kelly Yamanouchi at 535-2470 or at kyamanouchi@honoluluadvertiser.com.
