Hotel Online  Special Report

Suntory Ltd. Sells the 252-room Princeville Hotel, Two
Golf Courses to a Joint Venture Led by
Resort Developer Jeffrey R. Stone


Kama'aina Partnership - Local Management Team to Guide Resort's Future

PRINCEVILLE, Hawaii - March 18, 2005 -- Princeville Associates, LLC, a joint venture company led by resort developer Jeffrey R. Stone, announced today its purchase of the 9,000-acre Princeville Resort on Kaua'i. The acquisition includes the 252-room Princeville Hotel, two Robert Trent Jones Jr.-designed championship golf courses, the Princeville Tennis Club and Pro Shop, Princeville Health Club and Spa, Princeville Shopping Center, Princeville Airport and other land holdings on Kaua'i's North Shore. The purchase price was not disclosed.

Starwood (The Luxury Collection) will continue to manage the operations of the Princeville Hotel and all hotel employees will be retained under Starwood's management.

Princeville Associates, LLC, a joint venture between Honolulu-based Hawaii Land Development Corporation and the Morgan Stanley Real Estate Fund IV Domestic, and Cornerstone Real Estate Advisors, purchased Princeville Resort from Suntory Ltd., Mitsui and Company Ltd., and Nippon Shinpan Company Ltd., owners of the property since 1979.

Cornerstone, an indirect, wholly-owned subsidiary of the Mass Mutual Financial Group, manages over $5 billion on behalf of a number of major public and corporate pension funds, endowments, foundations and Taft-Hartley Plans, as well as Mass Mutual. The firm invests in private and public equity real estate.

"We are committed to the success of Princeville and to enhancing the lifestyles of the residents of Kaua'i," continued Stone. "Our first intent is to build rental apartments primarily for Princeville employees, immediately addressing one of the important concerns of the community. Additionally, as soon as plans are approved, a multi-million dollar renovation of the Princeville Hotel will be initiated. We look forward to restoring this one-of-a-kind property, a North Shore icon for so many years, to the grandeur it enjoyed in the past." 

Plans for the renovation of the Makai Clubhouse, which will serve as the resort hub, housing lifestyle facilities and a Visitor Sales Center, are also underway. Kitson & Partners, a leader in golf course and country club operations nationwide, has been selected to manage the operations of the Prince and Makai golf courses and will evaluate potential upgrades to both. All non-hotel employees will be retained by Princeville Operating Company.

In partnership with the state, county and local community, Jeff Stone has led the revitalization of Ko Olina Resort, a 642-acre ocean front resort on Oahu. Since Stone took over Ko Olina in 1998, the resort has become an economic engine for both the county and the state, generating nearly 2,000 new jobs and bringing in over $1 billion in investments to the State of Hawaii.


Starwood Hotels & Resorts
Tammy Maeda, 808-931-8232

Princeville Hotel
Stephanie Kaluahine Reid, 808-826-2286

Also See: Hawaii Land Development Corporation and the Morgan Stanley Real Estate Funds Acquiring the Princeville Resort from the Princeville Corporation, Owner Since 1979 / July 2004
Starwood Acquires the 413 room Sheraton Kauai for $40 million from the Obayashi Corporation / March 2004
Ko Olina Company, LLC Acquiring the Ihilani Resort and Spa; Marriott International Appointed as Manager / Oct 1999

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