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The Honolulu Advertiser
Updated at 10:34 a.m., Thursday, January 22, 2009

Hotel Hana-Maui under new management

By CHRIS HAMILTON
The Maui News Staff Writer

WAILUKU - The Hotel Hana-Maui & Honua Spa is under new management, but it appears doubtful whether that will have an impact, at least immediately, on the luxury hotel's staff, The Maui News reported today.

Principal partner Peter Heinemann of the 70-room hotel's now-former management company, Passport Resorts, sold the company's minority interest earlier this month, said Emily Allen, spokeswoman for majority owner Ohana Hotel Co., on Wednesday.

Ohana bought out Heinemann's share for an undisclosed price and then installed Vermont-based Arden Grove Hospitality LLC as the new management company, Allen said.

The post World War II-era hotel is Hana's largest employer with 260 workers. The resort is located on 70 acres adjacent to the Hana Ranch.

"I think because just one investor sold, the employees don't feel as worried about the future," said Maui County Council Member Bill Medeiros, whose residency seat includes Hana. "The people I spoke to think the outlook is good for the hotel. Otherwise, they wouldn't be buying. I think they also feel a little secure since it's back on track, and that one piece is no longer for sale."

The entire Hotel Hana-Maui was put on the real estate market for about $70 million in August 2007. The ownership group, however, reversed course on the sale last summer once the credit market started its rapid descent, Allen said.

"I'm not sure what the new company will do as far as the management of employees goes," said Allen, who is with the public relations firm Graham & Associates of San Francisco.

She noted that occupancy at the hotel is down, on par with the rest of Maui, which saw the number of visitors drop by up to 30 percent in the last year.

Allen said Passport Resorts decided to divest from the Hotel Hana-Maui in order to focus more on its eco-friendly California properties. Passport Resorts manages three hotels in California and one in Fiji.

The new arrangement took effect Jan. 6, according to a news release issued on Tuesday.

Maui County Mayor Charmaine Tavares said she doesn't expect any major changes at the property.

State Sen. J. Kalani English, whose district includes Hana, said several Hotel Hana-Maui staff members told him they were optimistic about the new management company.

"They (the new owner) said they would love to bring back the hotel to what it once was, but that's what, of course, every owner has said," English said. "I hope they will be willing to put in a lot of money into it and hopefully sustain the hotel without any cuts. The employees I spoke with were upbeat and said it is a breath of fresh air."

Passport has run the hotel since 2001 and oversaw major renovations. The exclusive resort has won 22 prestigious awards in recent years, including being named a top retreat by the readers of Conde Nast Traveler, Travel+Leisure and Modern Bride. It also won a Four Diamond (excellent)?rating by AAA.

Arden Grove Hospitality was just incorporated last year. The hotel's managers in Hana did not return a message Wednesday seeking comment.

Hotel Hana-Maui is no longer associated with the 4,500-acre Hana Ranch, which is for sale.

* Chris Hamilton can be reached at chamilton@mauinews.com.