Ritz-Carlton has attached its name to a $275 million luxury condominium hotel project planned for the western end of Waikiki.
Los Angeles-based developer Pacrep LLC announced the new partnership agreement earlier this month. The 37-story high-rise — slated for the 2100 block of Kalakaua Avenue, on the former site of Hula’s Bar & Lei Stand — will be called the Ritz-Carlton Residences Waikiki Beach.
Now in the permitting and final design phases, construction work on the 459-unit tower is scheduled to begin in late 2013, with completion expected in early 2016.
“We believe it will be one of the most luxurious properties in Hawaii,” said Jason Grosfeld, the managing principal for Pacrep, adding that the building will feature “remarkable ocean views” over Waikiki’s Fort DeRussy.
Grosfeld also developed the 38-story Trump International Hotel Waikiki Beach Walk, which opened in 2009, and said the new Ritz-Carlton property will be similar, featuring residential condominium units ranging in size from 400 to over 3,000 square feet that will be sold to individual investors and then frequently rented to visitors.
Pacrep expects to sell all 459 Ritz-Carlton units for more than $300 million, according to an environmental assessment filed with the city and county of Honolulu in October, and projects that the luxury condo hotel will generate $20 million to $30 million in on-site hotel room sales annually.
“Our feeling is there is absolutely pent-up demand for high luxury product in Waikiki, whether that’s condominiums or hospitality product,” Grosfeld told Travel Weekly. “And all the data we’re looking at tells us that Ritz-Carlton is going to be extremely popular and just what the market is yearning for.”
The luxury condo hotel would be Ritz-Carlton’s first property on Oahu and just its second in the Hawaiian Islands. The hotel management company currently operates residences and a hotel in Kapalua, Maui.
“We look forward to working with Mr. Grosfeld and his team as they enter the Waikiki market with their exciting new property,” Ritz-Carlton Senior Vice President Tim Grisius said in a statement. “And we also look forward to introducing our company’s legendary hospitality to an iconic location such as Waikiki.”
Once completed, the new Ritz-Carlton Residences in Waikiki will feature resort pools, a spa, fitness center, multiple restaurants and a gourmet food market.