Outrigger Hotels and Resorts (Outrigger) and KSL Capital Partners, LLC (KSL) announced today that affiliates of the companies have signed a purchase and sale agreement for an affiliate of KSL to acquire Outrigger.
The transaction includes all 37 of Outrigger’s multi-branded portfolio of hotels, condominiums and vacation resort properties. The transaction is subject to shareholder approval and customary closing conditions.
“As one of the world’s leading investors in hospitality, KSL has the capital capacity to elevate Outrigger to the next level – infusing additional resources into our current assets and helping to accelerate our long-term growth goals,” said Outrigger Enterprises Group CEO, W. David P. Carey.
“Without question, this is an exciting time for Outrigger; our brand has never been stronger and it is with enthusiasm that we look forward to the advantages that this transaction will create for our valued hosts, guests and communities we serve.”
Outrigger currently operates or has under development 37 properties with approximately 6,500 rooms located in Hawaii (Oahu, Maui, Kauai, Hawaii Island); Guam; Fiji; Thailand; Mauritius; and the Maldives.
“Since my grandparents – Roy and Estelle Kelley – founded Outrigger in 1947, our family-run hospitality business has created world-class vacations for millions of travelers and life-changing employment opportunities for our hosts,” said Dr. Charles Kelley, board chairman of Outrigger Enterprises Group.
“Our family is humbled to have had the privilege of leading this company for nearly 70 years and to have worked with some of the best in the industry. We have a responsibility to make strategic decisions today that put our company on the best path for future success; we are confident that KSL will make Outrigger more resilient in today’s global hospitality market.”
Marty Newburger, partner at KSL, said Outrigger’s and KSL’s “values are aligned with creating lasting and memorable experiences for our resort guests at properties that are integral to the communities in which they operate”.
“Outrigger is a well-established, highly successful company that has built a unique portfolio of world-class hotels,” he said.
“For nearly seven decades, the Outrigger team has been focused on providing authentic, localized experiences for guests in iconic resort destinations. We are excited to continue the strong tradition that the Kelley family has built.
“Outrigger owns and operates resorts in truly remarkable destinations and KSL is excited be a part of the next chapter of Outrigger’s extraordinary story,” Newburger said.
Upon closure of the transaction, Outrigger’s current management team will continue to lead the company and the company’s headquarters will remain in Honolulu, Hawaii, under the management of CEO Carey.