New owner expected at Kona Village Resort
By Andrew Gomes
Advertiser Staff Writer
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| The Kona Village Resort on the Big Island is situated around the ruins of an ancient fishing village and natural brine tidal ponds fronting Kahuwai Bay at Ka'upulehu. A sale is impending at the exclusive retreat. |
Resort management recently notified the state Department of Labor & Industrial Relations of an "impending sale" of the 125-bungalow resort to Kona BB Property LLC, but could not be reached for further information yesterday.
Kona BB is registered in Delaware, but has a Chicago address shared by Beanie Babies maker Ty Inc.
Other people with knowledge of the sale, estimated to be for more than $50 million, confirmed that Warner is behind the deal.
The marketing genius who founded Ty Inc. in 1986 has been investing his wealth from plush toys in several resort properties over the past few years, including the Four Seasons Hotel New York, Four Seasons Resort Santa Barbara and the ultra-private bungalow-style San Ysidro Ranch resort also in Santa Barbara, Calif.
A Ty Inc. representative in Chicago could not be reached yesterday after business hours.
The Kona Village transaction is expected to be completed by the end of the month, and Kona BB intends to rehire the resort's 246 employees, according to the notice by resort management.
Kona Village is owned and managed by companies headed by Katsumi Iida, owner of Tokyo General, a Japanese commodity trading firm that partnered with an affiliate of Tokyo-based Hibari Development Co. Ltd. to buy the resort for $55 million in 1989.
The resort, situated around ruins of an ancient fishing village and natural brine tidal ponds fronting Kahuwai Bay at Ka'upulehu, was established in 1965 by John M. "Johnno" Jackson as a retreat for himself and his wealthy friends and associates.
In the 1970s and 1980s, companies based in Canada and Colorado acquired Kona Village, which is on 82 acres of leasehold land owned by Kamehameha Schools, before the 1989 sale to the Japanese firms that went on to participate in the 1993 purchase of the Kahala Hilton.
Ron Watanabe, vice president of hospitality advisory services for local real estate firm Chaney, Brooks & Co., said Kona Village with its old-Hawai'i atmosphere and luxury prices has long been a place where the rich and famous go to hide out.
"When you think of today's standards, it isn't a fancy Four Seasons, but people like it because it's rustic," Watanabe said. "It's nice."
The exclusive upscale retreat is known for its thatched-roof cottages that don't have telephones, televisions, clocks, air conditioning or room keys. The hale are designed to replicate eight architectural styles of Polynesia.
Published room rates range from $515 to $910 a night for double occupancy, and include three meals at the resort's two oceanfront restaurants and activities such as guided outrigger canoe rides.
"I hope the new owners will maintain that certain type of atmosphere," said Big Island Mayor Harry Kim. "Kona Village is special."
Reach Andrew Gomes at agomes@honoluluadvertiser.com or 525-8065.
