Macquarie provided capital for Dovetail, an owner and creator of experiential real estate, to enter the market on an attractive basis by acquiring an existing property in need of refurbishment and rebranding. As global leisure travel picks up following a COVID-19-induced lull, the newly renovated hotel, which is well-located along the Ala Wai Canal and within close walking distance to Waikiki Beach and major shopping corridors, has the potential to become an immense asset to Dovetail, travellers and the broader Honolulu community.
Upon acquisition, the leasehold and leased fee structure were collapsed, making it one of only a few hotels in Waikiki that are owned fee simple.
Following the renovation, which will improve hotel facilities and amenities, the property will be rebranded as a ‘Wayfinder’, Dovetail’s proprietary hotel brand. Other hotels in Waikiki which have undergone similar renovation and repositioning have achieved 2-3x increases in revenue-per-available room.
Global Co-Head of Real Estate Principal Finance at Macquarie Capital