Back in 2008 Starwood Capital announced the property they had recently purchased, the Renaissance Wailea, would be torn down and replaced as a completely new resort – Baccarat Wailea Hotel & Residences.

Unfortunately, like alot of construction projects announced during that time – the project never got off the ground and was eventually canceled.

Not much has been said about the property or the project – in fact the former Renaissance has been closed and deserted since 2007 leading to speculation as to what will go there.

Last week, with Hyatt Hotels, Starwood Capital announced that they will be starting a joint venture to open an Andaz Resort & Residences on the property, it's due to open in the fourth quarter of 2012.

The Former Renaissance Wailea

Starwood Capital already has a number of Hyatt Hotels in their portfolio, off the top of my head I know they own the Hyatt Regency New Orleans, and one in Chicago as well, so dealing with Global Hyatt isn't exactly something new to them (I'm sure some will find that hard to believe!) In fact, this joint venture is a very good deal for Starwood Capital.

According to their press release, Hyatt will be contributing around $90 million for the renovation and improvements for the property, and the press release didn't mention it, but Starwood's biggest expense will most likely just be the land and it's existing buildings.

That's a HUGE discount from the initial capital expense Starwood would have had to incur for the construction of the Baccarat hotel; not only would they have to tear down the existing buildings, but Baccarat required a completely different site plan and appearance than exists on the current site.

Plus, even though Andaz isn't a W or Baccarat or other Barry Sternlicht creation – the Andaz brand does have the design and architecture ethos that is typical for a Sternlicht creation.

I'll be interested to see how the property ends up looking – all the Andaz's so far have not disappointed in appearance and unique style, I'm sure this one won't disappoint either.

andrew@alconic-inc.com

Andrew Calvo is a Commercial Real Estate Advisor in New Jersey. I live in Tinton Falls, NJ. This blog is about my passions - primarily hotels, commercial real estate, and development, etc.

Since I have been in High School I've had numerous jobs, but the field which has always interested me is Real Estate, Hotel Development and Construction. I consider myself a zealot in that area - I try to absorb as much as I possibly can, take the experiences that I learn, or read about and use them in my life. 

www.passionsofazealot.com