Denver investors buy Hotel Hana-Maui

Produced from Pacific Business News

A Denver-based real estate investment company is buying the Hotel Hana-Maui for an undisclosed amount and plans to change how the boutique hotel is operated.

AmStar Group LLC said Tuesday that it would purchase the 70-room hotel on 70 oceanfront acres in East Maui from Ohana Hotel Co. in a deal that is expected to close in May.

The firm plans to reposition the AAA Four Diamond hotel, which will mean a change in current operations and new job descriptions that will mean a reduction in staff in the short term, the company said.

“A change in the existing operational model is critical to turning the hotel around and into a viable operation,” Joy Berry, president of Green Tea LLC, an Amstar subsidiary that will manage the property, said in a news release. “Our revamped organizational structure will take a team approach requiring employees to have more than one role, so that no matter the task, we all work together and help each other out to ensure the long-term viability and success of the hotel and more jobs for the community.”

In January, Ohana Hotel Co. notified the Hawaii Department of Labor and Industrial Relations that there was a pending sale that would affect approximately 200 employees, some of whom are members of the UNITE HERE Local 5, AFL-CIO labor union. The buyer at that time was not identified.

Green Tea plans to host a job fair within the next few weeks and is encouraging current employees and members of the community to apply for jobs. The company said it also is looking at possibly outsourcing some operational functions.

“We believe the Hotel Hana-Maui, if repositioned in the marketplace, can be profitable and grow, offering more jobs,” Berry said. “However, it will take hard work, resources, time and, most importantly, employees who support each other as we reposition the hotel.”
The purchase will be the first in Hawaii for Amstar, which owns hotels and resorts in Virginia, Illinois, Rhode Island, Florida, California and Colorado. It also owns office, multifamily, industrial, retail, residential and mixed-use properties in a number of states on the Mainland.