• Asset Management Strategy for Top 10 Hawaii Resort encompassing 62 acres and 1,240 guestrooms
• Asset Management support for Acquisition Underwriting
• Development and implementation of 10-Year Capital Plan
• Analysis, prioritization and execution of ROI projects

SITUATION

The Hilton Waikoloa Village is a Top 10 Hawaii Resort encompassing 62 oceanfront acres, 1240 guestrooms, 14 food and beverage outlets and various resort amenities. The property was owned by a joint venture comprised of a majority owner – a South Korean real estate conglomerate and Hilton Hotels Corporation as the owner of a minority interest. Hilton decided to purchase the remaining majority interest in the asset in order to fully own the asset, and maximize the value of the underlying real estate.

PLAN

• Provided asset management support to the acquisition underwriting process
• Conducted acquisition due diligence with a specific focus on deferred maintenance and ROI capex
• Developed a 10-Year Master Plan encompassing all areas of capex needs
• Completed a detailed analysis of all infrastructure needs including MEP, IT, and Building and Code requirements
• Initiated a phased renovation of the guestrooms and provided asset management coordination with Design, Architecture & Construction, Operations, Brand Management, and Project Management
• Analyzed and underwrote multiple ROI and Special Projects with recommendation on prioritization, scope and timing, and related return on investment metrics

RESULTS

• Asset was acquired within targeted pricing range, at a 45% discount to replacement cost
• 10-Year capex plan initiated to maximize real estate value
• Executed three ROI projects, with a combined IRR of 24%