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LA-based Company Buys Waikiki HotelAugust 14, 2009 By: Jena Tesse Fox
The Honolulu Advertiser is reporting that LA Koreana Inc., a Los Angeles hotel and golf course company, has agreed to buy the Queen Kapi'olani Hotel in Waikiki and the Mililani Golf Club from local developer Bert A. Kobayashi.
The sales are expected to be completed October 15, although the terms were not disclosed.
LA Koreana Inc. has properties in Korea, Japan and the continental 48 United States. The company also owns the 'Ewa Beach Golf Club, according to Wayne Williams, a principal with Warnick and Co., a firm that manages assets for LA Koreana. Williams said it was premature to say what, if any, repositioning plans LA Koreana has in mind for the two properties if the sales close as scheduled. The buyer has an obligation to assume collective bargaining agreements at both the hotel and golf course, according to the seller.
In the case of the 314-room hotel, the buyer isn't obligated to retain employees, according to a notice the seller filed with the state Department of Labor and Industrial Relations. But a spokesman for UNITE HERE Local 5, the union representing 56 workers at the hotel, said a buyer would have to retain unionized workers.
For the golf course, the seller said LA Koreana intends to keep all employees.