# Diamond Resorts to acquire The Modern Honolulu hotel



## DanZale2000 (Feb 7, 2018)

I'm not sure what this news item implies. Diamond may convert the hotel to condominiums and add the inventory to the Hawaii Collection. Diamond may add the inventory to the Embarc Collection (the hotel was named Honolulu’s “Best Boutique Hotel” by readers of Hawaii Magazine, whatever that might mean). Diamond may add inventory to both Collections. I have read here on TUG about other developers who convert hotels. On the other hand, many DRI members have the idea that Diamond whats to enter the hotel business. If that is true, maybe Diamond leaves the building as is.

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From the Pacific Business News
Time-share resort firm buying The Modern Honolulu hotel
Feb 5, 2018

The Modern Honolulu hotel in Waikiki is under contract to be sold to Las Vegas-based time-share operator Diamond Resorts International for an undisclosed price.

The buyers have signed a purchase agreement and are undergoing a 90-day due-dilligence period before the transaction closes, possibly in early May, Douglas Rucker, managing director of The Modern Honolulu, told Pacific Business News.

Rucker said the hotel’s 400 employees were told about the deal last week, and that until then, and probably afterward, “it’s business as usual.”

“There’s a lot of details that need to be worked out, on both sides,” he said. “What we’ve been told more than anything is that Diamond is as curious about us as we are of them.”

The 353-room was once part of the Ilikai hotel-condominium next door until July 2006, when developer Brian Anderson bought both properties, and simultaneously sold the former Yacht Harbor Tower to M Waikiki LLC for $80 million.

The hotel underwent an extensive renovation over the next few years, reopening in the fall of 2010 as the Waikiki Edition, the first property in a partnership between Marriott International and hotelier Ian Schrager.

In late August 2011, Marriott was removed from managing the hotel in an overnight switch that rebranded the hotel as The Modern Honolulu. Around the same time, M Waikiki LLC filed for Chapter 11 bankruptcy reorganization, emerging from bankruptcy in June 2013.

Diamond Resorts has a number of time-share properties on the Neighbor Islands, is currently developing a new resort in Kailua-Kona.

PBN has reached out to Diamond Resorts International.


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## happymum (Feb 7, 2018)

Very interesting news!


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## pedro47 (Feb 7, 2018)

That hotel property is rated four (4) stars by TripAdvisor with some very excellent reviews by vacationers.


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## GrayFal (Feb 7, 2018)

happymum said:


> Very interesting news!


It would be great if it became a Diamond TS trading thru II.  We loved the restaurant there and the cool vibe of the lobby, pool and bars.


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## DanZale2000 (Feb 7, 2018)

pedro47 said:


> That hotel property is rated four (4) stars by TripAdvisor with some very excellent reviews by vacationers.



Diamond will destroy that rating -- On that I have no doubt.


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## pedro47 (Feb 8, 2018)

DanZale2000 said:


> Diamond will destroy that rating -- On that I have no doubt.


I agree with you 100%.


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## DanZale2000 (Feb 14, 2018)

Diamond has hired Lars Fitter who runs a Hotel makeover business in Hawaii. In a December 2017 interview Fitter says: "We have another client of ours, Diamond Resorts, who is really looking to increase their footprint here in Hawaii. They are looking at acquisition and new build opportunities, both here on Oahu and on the Big Island, so we’re trying to help them through that process."

https://www.bizjournals.com/pacific/news/2017/12/01/lars-fitter-hotel-makeover-master.html


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## artringwald (Feb 17, 2018)

The one thing they can't fix is the location. It's next to the boat harbor and not close to a beach.


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## SeattleAl (Mar 13, 2018)

Got the email yesterday.

"You asked, we listened.


We are excited to announce that Diamond Resorts™ is expanding its network of properties in Hawaii with The Modern Honolulu, located just steps from Waikiki Beach in beautiful Honolulu. As our first property on Oahu, The Modern Honolulu will be one of our premiere destinations for your next vacation. We expect to finalize the acquisition in the next few months, and we will let you know when the acquisition has closed.


Rated a Forbes Four-Star hotel, The Modern Honolulu offers the perfect mixture of urban modern design and traditional Hawaiian vibes, with unrivaled views of the Kahanamoku Lagoon. It features five onsite restaurants and bars, and offers endless opportunities for relaxation with two sprawling swimming pools and a full-service spa.


The Modern Honolulu is conveniently located within walking distance of the beach and Waikiki's famed Kalakaua Avenue shopping district and Ala Moana Center mall. The resort is also just a short taxi ride away from Honolulu's popular attractions, including Pearl Harbor and Diamond Head, and is only a 15-minute drive from Honolulu International Airport. Accommodations are meticulously designed with custom furniture and fabrics, and feature teak sliding window screens, oversized glass-enclosed showers and beautiful Terrazzo countertops. It is a spectacular property and we are thrilled to offer it to you and your family.


As a member of The Club®, you can now book using your membership points by calling (U.S.) 1.877.374.2582 or (EU) 0345 359 0005. We are excited to expand our network of properties and look forward to welcoming you to The Modern Honolulu.


Sincerely, 
Diamond Resorts™"


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## PeelBoy (Mar 18, 2018)

Good news but how many points.  Diamonds has added some wonderful properties in the past few years but the points required are unreal.


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