Staying At Hawaii Hotels In Foreclosure

Should you stay at a Hawaii hotel that’s in foreclosure?

I think it’s a risk I’d rather not take.  With at the very minimum, changes in management, hotel brand affiliation and frequent guest programs, your stay may not be all that you had hoped for.  Here’s an update on several properties in foreclosure:

1.  W Hotel Honolulu in foreclosure and ending its contract with Starwood effective January 9, 2009.

For now, the hotel will apparently be managed by its pre-foreclosure owner, Brian Anderson’s Anekona.  It will also be rebranded, according to Starwood’s announcement.

There goes the Starwood third night free offer and your guest points.  While I was writing this post, the deal was removed from their site.  No new name or additional management information has yet been disclosed.  The hotel has operated under Starwood’s boutique luxury brand for nearly ten years.

2.  Waikiki’s Illikai hotel.

Its Anekona-owned units are already in foreclosure and will likely be sold at public auction.  These included 343 units, the hotel lobby, operations and retail areas, although nearly 100 of the units were previously sold.

3.  Aloha Beach Resort.

Wells Fargo Bank filed the foreclosure lawsuit in August against Anekona. The hotel sits on 10 acres leased from the State, and is adjacent to Kauai’s Lydate Park and the Wailua River.  The hotel was branded ResortQuest earlier this year.

4.  Hilton Kauai Beach Resort.

In July, the Kauai Beach Resort went into foreclosure, with a claim that Anderson’s company was in default on nearly $30 Million.  At this point it continues to fly the Hilton flag, as it has for the past two years.  It was previously branded Radisson.