The Star Advertiser is reporting that Outrigger Hotels and Resorts, which has been owned and operated by the Kelley family for 69 years, has signed an agreement to sell the business to Denver-based KSL Capital Partners LLC.
The transaction, which is expected to close in 60 to 90 days for an undisclosed price, includes all 37 hotels, condominiums and vacation resort properties operated, owned and managed by Outrigger. After the transaction closes, business is expected to continue as usual with the company’s name kept intact and its headquarters remaining in Waikiki, Hawaii.
However, according to the report, the deal does put the planned $100 million renovation of the Outrigger Reef on hold while KSL evaluates the best direction for the property, which Outrigger owned in fee simple.
David P. Carey, who is married to the former Kathy Kelley, the granddaughter of Outrigger founders Roy and Estelle Kelley, will continue as the company’s president and CEO, according to the report.
While the family-owned Outrigger Enterprises has deep Waikiki roots, over the last two decades it had emerged as one of the largest privately held hotel firms in the Pacific, according to the report.