KSL Capital Partners and the Kelley family announced Tuesday that a KSL affiliate has completed the acquisition of Outrigger Hotels & Resorts in a sale that includes Outrigger's portfolio of 37 multi-branded hotels, condominiums and vacation resort properties in Hawaii and around the globe.
The financial terms of the deal were not disclosed.
The sale doesn't mean a massive shakeup is coming, though. Outrigger's current management team, led by president and CEO W. David P. Carey, will remain in place and continue to lead the company from its headquarters in Waikiki, Hawaii.
The acquisition signals a significant milestone as Outrigger has remained in the Kelley family for nearly 70 years since Roy and Estelle Kelley founded it back in 1947.
In a statement, the Kelleys' grandson and outgoing Outrigger chairman Charles Kelley said the family is "enthusiastic" about the brand's future under the new ownership.
Carey echoed that sentiment.
"KSL's deep knowledge and experience in our industry, capital capacity and shared vision make it the perfect choice to lead Outrigger to still higher levels," said Carey in a statement. "With the deepest appreciation for the generations of wise stewardship of Outrigger by the Kelley family, we are truly looking forward to our next chapters with KSL."
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Outrigger currently operates roughly 6,500 rooms in Hawaii, Guam, Fiji, Thailand, Mauritius and the Maldives. However, that number appears poised to grow.
"As we move forward with this new era for Outrigger, we are optimistic that it will continue global growth in iconic resort destinations and achieve even greater success," said KSL partner Marty Newburger in a statement.
Goldman, Sachs & Co. acted as exclusive financial advisor and Latham & Watkins LLP acted as legal counsel to Outrigger on the acquisition, while Deutsche Bank Securities Inc. acted as financial advisor and Simpson Thacher & Bartlett LLP acted as legal counsel to KSL.
The completed transaction comes just over one month after Outrigger and KSL agreed to the acquisition and just one week after KSL and KKR entered into a definitive agreement to acquire the Apple Leisure Group.
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