Fairmont buying Makaha Resort
By Andrew Gomes
Advertiser Staff Writer
A British Columbia, Canada-based hotel and time-share operator has agreed to buy the Makaha Resort Golf Club and is considering selling time-share interests in the recovering West O'ahu property.
Fairmont Resort Properties Ltd., which has hotel and time-share operations at three Canadian resorts, expects to complete the purchase of the 173-unit hotel and 18-hole golf course within the next week or so for an undisclosed price.
The company said it expects to hire the majority of about 150 resort employees, and plans to make mostly cosmetic renovations in the short-term followed by room and meeting facilities upgrades, changes at the restaurant and possible time-share sales.
No timetable or estimated renovation costs were disclosed for the more extensive modifications.
The Fairmont deal would be the second sale and upgrade of the hotel and golf course in a little less than four years.
In late 2000, Wisconsin-based real estate development company Towne Realty Inc. bought the golf course and shuttered hotel for $6.1 million from ANA Hotels Hawai'i Inc. In 1995, ANA closed the hotel and laid off 175 employees.
Towne Realty, spent about $700,000 on room and common area renovations, according to building permit records, reopened the hotel in late 2001 and marketed the property as a kama'aina retreat. Room rates start at $109, or $85 for kama'aina.
Walter Bono, the new Makaha Resort general manager hired by Fairmont, said the hotel and golf course are in great condition, and that the property just needs more exposure.
"People don't know that the hotel is open," he said. "We have big expectations for the property and expect it to be successful."
Bono, who previously managed condominiums on Kaua'i and before that worked for Outrigger Hotels & Resorts and Marriott International, said Fairmont will offer room and golf packages at special rates following completion of the purchase.
Collin Knight, Fairmont's president, also said the company plans to seek business from local weddings, parties, reunions, conventions and other special events. "We consider the Makaha Resort and Golf Club a great asset and we intend to do all we can to maximize its potential," he said in a statement.
Fairmont operates about 800 hotel and time-share units in British Columbia, including 169 units at the 300-acre Lake Okanagan Resort and Fairmont Hot Springs. The company also claims to be the first vacation ownership company to offer houseboats and motor homes to its members.
Fairmont Resort Properties is not affiliated with Fairmont Hotels & Resorts, a Toronto, Canada-based luxury hotel company that owns The Fairmont Orchid Hawaii on the Big Island and The Fairmont Kea Lani Maui.
The Makaha Resort was built in 1969 by Island financier Chinn Ho and for years was managed by Sheraton. ANA Hotels bought the property in 1979, but never was able to turn a profit.
Reach Andrew Gomes at agomes@honoluluadvertiser.com or 525-8065.
