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Ewa Hotel Waikiki – Image Credit CBRE
The Ewa Hotel Waikiki, located at 2555 Cartwright Rd, Honolulu, HI, is now listed for sale. CBRE, Inc. has been appointed as the exclusive marketing advisor for this leasehold sale. The hotel is strategically positioned in the heart of Waikiki, a globally recognized tourist destination, and offers significant potential for investors looking to capitalize on its prime location and underutilized features.
Property Overview
The Ewa Hotel Waikiki is situated on 15,000 square feet of leasehold land and comprises 92 guest rooms. It boasts an 8th-floor rooftop deck with panoramic views of the Pacific Ocean and Diamond Head. The property’s lease was recently extended, providing a 50-year term with known rent through 2045, eliminating the uncertainty of rent re-openings. This makes the asset highly financeable, a rare advantage in Hawaii’s ground lease market.
Investment Highlights
Location
The hotel’s location is one of its most attractive features. It is just steps away from Waikiki Beach, Kapiolani Park, the Honolulu Zoo, and Diamond Head. The area is rich with amenities, including popular food and beverage outlets, retail shops, and entertainment venues such as the International Market Place. This prime location ensures a steady influx of tourists and potential guests.
Unencumbered by Management and Brand Affiliation
The sale of the Ewa Hotel Waikiki comes without any existing management or brand obligations. This provides investors with the flexibility to implement a new management strategy or rebrand the hotel. There is an opportunity to partner with Aqua-Aston Hospitality or introduce an internationally recognized hotel brand to strengthen its market position in Waikiki.
Strategic Repositioning Opportunity
Investors have the chance to reposition the hotel as an upscale property through significant renovations and the introduction of a new brand. By enhancing service levels, room quality, and guest amenities, the hotel can attract a more sophisticated clientele willing to pay higher room rates. This is particularly advantageous as Waikiki has seen a shift from economy hotels to up-market brands, creating demand for well-designed, affordable lodging.
Favorable Ground Lease
The extended ground lease, with 50 years remaining, includes a period of known rent for over 20 years. This removes financial risk and enhances the property’s attractiveness to potential financiers. This stability is uncommon in Hawaii’s ground lease market, adding to the investment’s appeal.
Capitalizing on Underutilized Features
The Ewa Hotel Waikiki has several underutilized features that can be leveraged to enhance its value. Most rooms are equipped with kitchenettes, making them appealing to a broad range of guests. Additionally, the 8th-floor sundeck, which offers stunning ocean views, could be transformed into a lounge area or another guest amenity, further increasing the property’s attractiveness.
Barriers to Entry
Waikiki’s zoning regulations and limited availability of land zoned for hotel and commercial use create significant barriers to entry for new developments. This scarcity ensures stability for the purchaser and allows for the implementation of an optimal business model without the threat of new competition in the immediate vicinity.
Inquire at CBRE.
