Maui Court Confirms Ritz-Carlton, Kapalua Hotel Foreclosure
On May 5, 2011, at $75 million, Lehman was the sole bidder at the foreclosure auction of the Ritz-Carlton, Kapalua Hotel. Lehman was the original lien holder on the property, which was owned by W2005/Gengate Realty. Lehman’s bid was subject to court confirmation, at which time, bidding could be reopened with a bid 5% higher than Lehman’s May 5th bid.
In the court confirmation hearing on July 20, 2011, bidding was reopened by a new party. However, Lehman remained the high bidder, recording at $95,000,000.
The hotel underwent an extensive renovation in 2007, at which time, the north (Honolua) wing was converted into 107 one and two bedroom condominium suites, which were then offered for sale as the Ritz-Carlton, Kapalua Residential Suites. Since the initial offering, 34 suites were purchased. The foreclosure action did not apply to these privately owned condominium units, but rather to the 73 unsold Residential Suites units, the 296 hotel rooms in the south wing, common areas, and commercial spaces. The hotel management is through the Ritz-Carlton, and the property is conveyed with this management in place.
This foreclosure action is solely for the Ritz-Carlton, Kapalua hotel and should not be confused with the Ritz-Carlton Residences, Kapalua Bay, which is a separate property entirely that was developed on the site of the Kapalua Bay Hotel.