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Friday, Jul 19, 2024

Soul Community Planet Closes on Hilo Hotel

A few months after closing a $210 million investment fund, hotel owner and operator Soul Community Planet has kicked off its acquisition push by closing on a 138-room waterfront hotel in Hawaii.  

SCP, a hospitality company launched in 2018 by former Sunstone Hotel Investors Chief Executive Ken Cruse, formed San Juan Capistrano-based SCP Hospitality at the end of 2020 with a goal of deploying nearly $500 million in new hotel investments over the next several years, with SCP overseeing branding and management of these acquisitions.

The Hawaii purchase brings SCP’s portfolio to four assets, and is the first of about 5 planned acquisitions for 2021.

Nearly $12M Sale 

SCP declined to disclose financial details in the buy of the Hilo Seaside Hotel, located on the eastside of the Big Island. Reports indicate the company paid $11.8 million, or about $85,000 per key, in an all-cash transaction for the 2.2-acre property.

It was sold by the family that originally opened the hotel in 1956, currently led by William and Matilda Wassman Kimi.

Breeani Sumera-Lee, a fourth generation Kimi family member, has been named general manager of the property, which will start taking reservations as SCP Hotel Hilo on April 15.

SCP is planning a $4.6 million renovation of the hotel, including changes to guest rooms and adding suites as well as a “plant-forward” market featuring locally-sourced food and beverage items.

“The hotel is a perfect new home to build on the foundation of Soul Community Planet’s approach to holistic hospitality, and to continue the Kimi family’s commitment to the local community, as well as support SCP’s focus on sustainability and environmental preservation,” said Soul Community Planet CEO Cruse.

Rapid Expansion 

SCP opened its first location in 2018 with SCP Colorado Springs. In the next two years, it opened SCP Redmond and SCP Depoe Bay, both in the Pacific Northwest.

“We have demonstrated our proof of concept, now it’s time for thoughtful growth,” said Cruse.

The company’s investment strategy moving forward will focus on acquiring in existing markets, including Southern California.

“With our most recent equity investment, we can do about $500 million in hotel acquisitions, and we want to put it to work fairly quickly,” Cruse said.

“We have a goal of buying 25 to 30 hotels within the next two to three years.” 

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