Posted on: Saturday, November 13, 2004

Princeville sale likely to close by January 12

By Andrew Gomes
Advertiser Staff Writer

The pending deal announced in July to sell Kaua'i's Princeville Resort to local developer Jeff Stone is expected to be completed Jan. 12.

The sale, estimated at a price of more than $200 million, will involve the transfer of nearly all of the resort's roughly 600 employees from the seller, three Japanese companies doing business as Princeville Corp., to Stone's Princeville Associates LLC.

A few senior executives would not be retained, according to a notice filed with the state by the seller.

Stone said he intends to make the underperforming Hanalei resort community one of the state's major resorts by adding one or two more name-brand hotels, homes, employee housing and other improvements over the next decade.

The acquisition, in partnership with Morgan Stanley Real Estate Funds, includes 9,000 acres under and around the 252-room Princeville Hotel, two championship golf courses, pro shop, tennis club, health club, spa and Princeville Shopping Center on Kaua'i's North Shore.

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