Posted on: Saturday, December 4, 2004
Prince Resorts Hawaii may go on market
By Catherine E. Toth
Advertiser Staff Writer
Prince Resorts Hawaii may get a new owner should its parent company in Japan, plagued with legal issues, decide to sell off its resort properties.
Seibu Railway Co., which owns four local resorts, is considering selling its hotel and golf course business in Hawai'i, Alaska and Canada, according to the Nikkei English News.
The sale, if it took place, would come on the heels of another major shift in hotel ownership in Hawai'i.
The five Sheraton-managed hotels in the state are being sold by their Japanese owner to New York investment firm Cerberus Partners LP, the Japanese company said earlier this week.
Prince Resorts Hawaii officials said they have not heard anything about a possible sale.
"We have had no indication to us in Hawai'i of any plans to place any of the Prince Resorts Hawaii properties on the market," said David McNeil of McNeil Wilson Communications, public relations spokesman for Prince Resorts Hawaii.
In fact, all four properties have been doing very well, McNeil added, benefiting from the state's strengthening economy and a record-breaking year for tourism.
Donn Takahashi, president of Prince Resorts Hawaii, could not be reached for comment.
Prince Resorts Hawaii operates the Maui Prince hotel, Makena Resort; Hawaii Prince Hotel Waikiki and Golf Club; Mauna Kea Beach Hotel; and Hapuna Beach Prince Hotel.
Despite their Japanese connection, all four properties rely heavily on business from North America, McNeil said.
Seibu Railway Co. has been undergoing an organizational reform after a string of missteps including allegations that it issued false financial statements regarding the ratio of major shareholders' stakes in the company. That has the Tokyo Stock Exchange considering delisting Seibu Railway, while it investigates the company.
Last month Seibu Railway reported that its consolidated net loss for the first half of fiscal 2004 had doubled from the year before to $10 million, mainly because of appraisal losses on properties holdings.
Reach Catherine E. Toth at 535-8103 or ctoth@honoluluadvertiser.com.
