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OFFERING MEMORANDUM
HAWAII INVESTMENT OPPORTUNITYFOR SALE : FEE SIMPLE
11-3968 Hale Ohia RoadVolcano Village, Hawaii
Duane Shimogawa RA (RS-79999)808 369 1126 (Direct) | 808 482 0829 (Cell) | [email protected]
DISCLAIMERThis presentation has been prepared by Avalon Commercial LLC (“Avalon”) on the basis of information obtained from Avalon’s client (the “Company”) and other public sources, as of the specified date. Avalon nor the Company undertake any duty or obligation to update the information. Neither Avalon nor the Company makes or gives any representation, warranty or guarantee, whether express or implied, that the information contained in this presentation or otherwise supplied to the recipient, at any time by or on behalf of Avalon or the Company whether in writing or not, relating to the offering discussed herein is complete or accurate or that it has been or will be audited or independently verified, or that reasonable care has been taken in compiling, preparing or furnishing the information. This presentation provides a guide only and it is not intended to be exhaustive and, in particular, does not contain disclosure of any of the risks associated with the opportunity. This presentation is not to be construed as investment, tax or legal advice in relation to the relevant subject matter. You must seek your own legal or other professional advice.
This presentation may contain statements that are forward-looking statements. These forward-looking statements, which are subject to numerous risks, uncertainties and assumptions, include projections of future financial performance, anticipated growth strategies and anticipated trends in the business. These statements are only predictions based on current expectations and projections about future events, subject to change due to actual results, level of activity, performance or achievements.
Any estimate or forecast contained in this presentation is not a promise or representation by Avalon or the Company as to future matters and nothing contained in the information should be relied upon as a representation as to future matters. The projections based on financial and other pro forma data set forth in this presentation were not prepared with a view toward compliance with U.S. Generally Accepted Accounting Principles or any other published standards. Projections and other pro forma data are derived from estimates, as of the date of this presentation, based on certain hypothetical assumptions, which are inherently subject to significant business, economic and competitive uncertainties and contingencies.
Independent estimates about the future benefits of the opportunity and pro forma data should be developed by investors before any decision is made on whether or not to invest in the opportunity and investors should not rely on the projections and pro forma data contained herein.
Summaries of any documents about the opportunity discussed herein are not intended to be comprehensive or all inclusive, but rather only outline some of the provisions contained therein and are qualified in their entirety by the actual document to which they relate. This presentation does not constitute an offer or invitation to make an investment, in any form, in the opportunity discussed herein. It has been prepared to obtain indications of interest about an investment to be made which will only be made upon the basis of the negotiations and executions of full investment documentation.
This is not an offer of an investment opportunity in any jurisdiction where it is prohibited or where a pre-filing or other action is required. You understand that the information is confidential and is furnished solely for the purpose of your review in connection with the opportunity discussed herein. You further understand that the information is not to be used for any other purpose or made available to any other person without the express written consent of Avalon. This offering is subject to prior placement and withdrawal, cancellation or modification without notice.
Copyright ©2019 Avalon Commercial LLC.
ContentsFee Simple Opportunity 2Property Summary 4Hawaii Visitor Statistics 5
Floor Plans 7-8
1
Fee Simple Opportunity
11-3968 Hale Ohia RoadTMKs: 3-1-1-005-019; 037; 046Units: 13 (6 Buildings, 1 Drive-way)Total Building Area: 6,118 sq. ft.Land Area: 52,513 sq. ft.Zoning: Residential
Other info.: The Hale Ohia Cottages garners lots of interest from visitors all around the world, as evidenced by its Certificate of Excellence from TripAvisor that is earned by hotels, attractions and restaurants that consistently earn great reviews from travelers.
The acquisition of the Hale Ohia Cottages offers an excellent opportunity to an investor seeking to acquire a magnificent resort property near one of the most-visited attractions in Hawaii. The opportunity offers investors:• A rare chance to own a gorgeous and well-kept resort
property on the Big Island of Hawaii• Hardly any quality competition in the area that’s highly
attractive to visitors year-round• Entrance to a market with significant barriers against
development• Consistently high occupancy with a near-perfect rating on
TripAdvisor
Asking Price: Submit Offer
Detailed financials available after signing a confidentiality agreement
2
3
Property Summary
The Hale Ohia Cottages is a jewel in the vast wilderness at the edge of Hawaii Volcanoes National Park, one of the most-visited tourist attractions in Hawaii.
This secluded hotel with cottages that were built in the 1930s is just minutes away from shops and restaurants. The Cottages, which consist of a main residence, guest cottages and a gardener’s cottage, as well as numerous support buildings, is nestled in a botanical garden setting, and affords guests a unique view of Hawaii’s storied past.
Located about three miles from the world famous Halemaumau Volcano Crater and 27 miles from Hilo International Airport on the Big Island of Hawaii’s southeastern side, the Cottages come with complimentary continental breakfast, free Wi-Fi, coffeemakers and minifridges, along with private bathrooms and seating areas.
Some areas have stained glass windows, lava rock fireplaces and rustic exposed beams. The Cottages, which carry unique architectural designs, each have private access points.
• Great location one milefrom Hawaii VolcanoesNational Park entrance
• Future possible add-on value by increasingroom rates
• Near-perfect rating onTripAdvisor
• Tourism at an all-timehigh in Hawaii, in termsof both visitor numbersand spending
• The Big Island’s tourismindustry remainsstrong in terms of bothvisitor count and roomoccupancy
• Perfect for investor wholoves the outdoors
Hale Ohia Cottages Summary
4
Hawaii Visitor Statistics5
Total Visitors 17-Aug 16-Aug % CHANGE YTD 2017 YTD 2016 % CHANGE Hawaii Island 152,550 133,561 14.2 1,196,926 1,049,969 14 Kona side 128,756 113,875 13.1 1,021,962 899,531 14 Hilo side 59,473 48,068 23.7 446,438 371,947 20 Hawaii Island only 67,072 61,086 9.8 574,468 516,564 11
Hotel Market Statistics(As of Q2 2017)
MarketOccupancy 2016 (%)
Occupancy 2017 (%)
Change (BPS)
Avg. Daily Rate '16
Avg. Daily Rate '17
Change %
RevPAR '16
RevPAR '17
Change (%)
Oahu 83.6 82.7 -90 218.08$ 229.09$ 5 182.24$ 189.35$ 3.9Maui 77 77.7 70 331.39$ 362.65$ 9.4 255.13$ 281.82$ 10.5Kauai 72.9 77.7 480 $ 252.25 263.02$ 4.3 183.93$ 204.45$ 11.2Big Island 69.4 75.4 600 242.16$ 252.69$ 4.4 167.96$ 190.56$ 13.5State 79.2 80.1 90 249.87$ 264.98$ 6 197.79$ 212.34$ 7.4
Source: CBRE
CATEGORY AND ISLAND Aug-17 Aug-16 % change YTD 2017 YTD 2016 % change
TOTAL EXPENDITURES ($mil.) 1,392.4 1,312.2 6.1 11,339.2 10,446.6 8.5
Total by air 1,391.4 1,311.4 6.1 11,316.0 10,423.9 8.6
Oahu 698.7 643.5 8.6 5,150.8 4,803.5 7.2
Maui 364.8 350.6 4.0 3,210.4 3,052.2 5.2
Molokai 1.4 3.3 -55.6 22.5 20.8 8.2
Lanai 5.4 10.1 -46.2 53.3 54.9 -2.9
Kauai 147.4 141.7 4.0 1,267.0 1,126.4 12.5
Hawaii Island 173.7 162.2 7.1 1,612.0 1,366.1 18.0
6
Occupancy (January - October 2017)
Floor Plans7
8
D: (808) 369-1126 C: (808) 482-0829
Phone
Queens Court Suite 501800 Bethel StreetHonolulu, HI 96813
United States of America
Address
OFFERING MEMORANDUM
HAWAII INVESTMENT OPPORTUNITY
FOR SALE : FEE SIMPLE
Hale Ohia CottagesVolcano Village, Hawaii
Duane Shimogawa (RS-79999)808-369-1126 (Direct) | 808 482-0829 (Cell) |
