JLL announced yesterday that it has closed the $21 million fee simple sale of the Kona Bay Hotel, a 122-key, select-service hotel in Kailua-Kona, Hawaii.
JLL marketed the property on behalf of the seller, a local family. Shapery Enterprises acquired the asset.
Situated on 2.06-acres, Kona Bay Hotel currently features a mix of 122 traditional guestrooms and suites, offering a swimming pool, ocean and village views and provides a tremendous opportunity to renovate and reposition.
Located in the historical Kailua-Kona village on the west side of Hawaii, Kona Bay Hotel is near popular tourist attractions, including Hawaii Volcanoes National Park, Mauna Kea Observatories, Hawaii Tropical Botanical Garden, and the Hilo Farmers Market. Approximately eight miles from the hotel is the Kona International Airport, offering flights from a variety of domestic and international cities.
Tourism makes up nearly 30% of Hawaii’s main economic drivers with the state seeing more than 10 million visitors in 2019, prior to the pandemic. In particular, the Island of Hawaii lodging market saw exceptional growth between 2010 and 2019, outperforming the state, with a CAGR of 8%.
The JLL team representing the seller was led by Eric Kathrein, Geoff Tranchina and Wendell Brooks.
“Kona Bay Hotel is a unique and rare opportunity to own fee simple in the high barrier to entry market of Kailua-Kona,” said Kathrein.
“It is a generational offering that is near and dear to the community, and we are excited to see the vision the buyer has for this property,” added Brooks.