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  • Writer's pictureRealFacts Editorial Team

Blackstone Set to Sell Turtle Bay Resort for Up to $725M, Doubling Its Investment

Turtle Bay Resort in Oahu

Blackstone is poised to sell the Turtle Bay Resort on Oahu's north shore, potentially netting a substantial profit after extensive pandemic-era renovations. The resort, which spans 1,300 acres and includes 450 rooms, is being sold to Host Hotels and Resorts, the largest publicly traded lodging REIT, as reported by Emily Wishingrad for Bisnow. The sale is expected to close in the third quarter of this year.

Press releases from Blackstone and Host Hotels indicate slight discrepancies in the purchase price, with Blackstone announcing $725M and Host reporting $680M. Either amount represents a significant increase from the $332M Blackstone originally paid for the property in 2018. Blackstone invested heavily in upgrading guest-facing areas from March 2020 to June 2021, during a period when the resort was closed.

“This transaction is an excellent outcome for our investors and a testament to Blackstone’s ability, including through the pandemic, to transform iconic, luxury hospitality assets,” said Rob Harper, Head of Blackstone Real Estate Asset Management Americas.

Turtle Bay Resort offers 450 rooms, including 42 beachfront bungalows, along with amenities such as an 18K SF indoor meeting space, six dining venues, seven retail stores, a spa, a fitness center, two golf courses, multiple beaches and pools, tennis and pickleball courts, an equestrian center, and a working farm.

Host Hotels plans to rebrand the resort under the Ritz-Carlton name and transition its management to Marriott. James Risoleo, President and CEO of Host Hotels, expressed excitement about the acquisition, noting it would expand and diversify their holdings in Hawaii.

Additionally, Blackstone has sold 65 acres to Turtle Bay Areté Collective, a developer known for its sustainability initiatives, bringing Blackstone’s total proceeds from the resort to $768M. This sale follows other notable transactions, including Blackstone's sale of a 705-room hotel in Phoenix for $705M and its 49.9% stake in MGM Grand Las Vegas and Mandalay Bay Resort in January 2023 for $1.3B, resulting in a $430.4M gain.

The impressive profit from the Turtle Bay Resort sale underscores Blackstone's capability in enhancing and monetizing luxury properties. However, potential discrepancies in the reported sale prices might cause investor caution. The market's reaction to these strategic divestments will be crucial in gauging investor confidence in Blackstone's future real estate activities.


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