- Associated Press - Wednesday, November 9, 2016

HONOLULU (AP) - Hawaii’s largest locally-owned hotel and timeshare operator will be sold to a Denver-based private equity investment firm, a spokeswoman for Outrigger said Wednesday.

Outrigger Hotels and Resorts and KSL Capital Partners have not disclosed the deal’s financial terms, said Outrigger spokeswoman Monica Salter. The deal is expected to take several months to finalize, she said.

The sale includes hotels in Hawaii as well as properties in Guam, Fiji, Thailand, Mauritius and the Maldives.

Outrigger Enterprises Group CEO David Carey said in a statement that KSL Capital has the funds to help the company achieve its long-term growth goals.

Outrigger has 4,500 employees and they are expected to be retained for the foreseeable future, Salter said.

Outrigger’s management team will stay on, including Carey and other senior executives overseeing marketing, finance, operations and other areas. Outrigger’s headquarters will remain in Honolulu.

KSL Capital invests in hotels, resorts, clubs and other travel and leisure businesses. Its affiliates own Miraval Group, a luxury spa and wellness company, and the Monarch Beach Resort in Dana Point, California.

Its website says it strives to “unlock ‘hidden value’” in its acquisitions by investing in them, finding operational efficiencies and enhancing marketing. Its portfolio of companies employ about 20,000 people.

The company’s capital comes from pension funds, university endowments, high net worth individuals and other sources.

Roy and Estelle Kelley founded Outrigger in 1947 when they built their first hotel in Waikiki, The Islander.

The Reef Hotel, which they built in 1955, was the first high-rise hotel in Waikiki. It’s now called the Outrigger Reef Waikiki Beach Resort.

The Kelleys opened five other hotels in Waikiki, taking advantage of the advent of jet travel and the start of mass market tourism in Hawaii.

Roy Kelley died in 1997, followed by his wife the next year. The company is now owned by four generations of Kelley family members.

Outrigger is Hawaii’s largest, locally-owned operator of hotels, condos and timeshares.

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