Financial services

Financing the revitalisation of a Waikiki Beach hotel

Macquarie Capital’s investment will enable Dovetail + Co. (‘Dovetail’) to enter the Hawaii hospitality market through its acquisition of a prime piece of Waikiki Beach real estate.

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Sector Financial Services
Sub-sector Property
Location United States


The Waikiki hospitality market offers unique challenges and opportunities, with geographic constraints and few land parcels unencumbered by ground leases. These same factors contribute to strong financial performance and have allowed operators to recover quickly from past recessions, making it a highly desirable, but relatively inaccessible, market for hoteliers.

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.


Macquarie Capital provided capital for the off-market acquisition and renovation of the 228-key hotel and the underlying land through the buyout of a ground lease.  Macquarie’s investment was structured as a senior loan in addition to a majority equity investment, for a one-stop financing solution for Dovetail.

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.


Macquarie’s flexible and innovative financing solution is enabling Dovetail to transform a key asset on Waikiki beach, adding to Honolulu’s dynamic and growing tourism industry.

Macquarie Capital provided a one-stop capital solution for our client to acquire a hospitality asset amid the uncertainties of the COVID-19 pandemic, and we look forward to completing the renovation and witnessing the hotel’s improved performance in the coming years. Above all, we’re excited to be part of a project that is helping to revitalize the Honolulu community and Hawaii’s tourism market.”

Jackie Hamilton
Global Co-Head of Real Estate Principal Finance at Macquarie Capital

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