Time share in Kapalua set to be luxury hotel and residences

The time-share Residences at Kapalua Bay will be converted to a combination residences and hotel and will undergo a name change, the new management company announced Thursday.

Montage Hotels & Resorts, based in Laguna Beach, Calif., was selected to manage the property by Lantern Asset Management for the owners Island Acquisitions Kapalua LLC, a company spokesperson said. Island Acquisitions Kapalua won an auction for the property following a bankruptcy proceeding completed this year.

Montage, which took over management Thursday, plans to begin a multimillion-dollar improvement program in the fall, with completion expected early next year, a company spokesperson said.

When the improvements are completed, the property will be renamed Montage Kapalua Bay. Until then, the name will remain the Residences at Kapalua Bay.

The project will convert the time share to a 56-residence-unit complex and a 50-room, all-suite Montage hotel, a news release from Montage said Thursday. The Montage Kapalua Bay will join the company’s other hotels and residences, Montage Laguna Beach and Montage Beverly Hills in California and Montage Deer Valley in Utah, the news release said.

The improvements will not touch the architecture, said the spokesperson. The intent of the work is to “fine-tune” the property to accommodate the hotel, adding a restaurant and lounge area, for example.

This will be a high-end hotel. Montage is a “luxury management company” that caters to the luxury traveler and homeowner, the spokesperson said.

The spokesperson could not give room rates but said that prices will be posted beginning in the fall.

“We are passionate about capturing the unique sense of spirit and place of the destinations in which we operate,” said Alan Fuerstman, Montage Hotels & Resorts founder and chief executive officer. “The aloha spirit of Maui and the graciousness of the Hawaiian people are the perfect complement to Montage’s style of service, making this resort an ideal addition to our portfolio. Guests looking for authenticity and a sense of discovery within a luxury setting will find it here.”

Andy Mitchell, president of the Dallas-based Lantern, said that the company will “look forward to working with the property’s owner associations and local leadership on the requisite approvals for our planned repositioning.”

Like other Montage hotels, Montage Kapalua Bay will celebrate art and artisanship in many forms, visually and through culinary and spa offerings, the news release said.

Regarding a spa at the property, the new owners are in negotiations with Maui Land & Pineapple Co., which has a commitment of up to $35 million to purchase the spa, beach club improvements and the sundry store, the company’s second quarter report said.

“The company is in active negotiations with the lenders of the Residences at Kapalua Bay project to resolve its limited guarantees with respect to the completion of the project . . . and purchase commitment,” the company said in its recently released quarterly report.

The Montage spokesperson did not know about those negotiations.

An entity mostly owned by ML&P built the Residences of Kapalua Bay on the site of the old Kapalua Bay Hotel and a spa on an adjacent parcel owned by ML&P, the quarterly report said. The Residences ended up in a foreclosure proceeding with Island Acquisitions Kapalua LLC, claiming the property in an auction this year for $100 million.

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