Montage Kapalua Bay acquired by KWC Management LLC

Posted by Courtney M. Brown on Friday, November 17th, 2023 at 12:48pm.

Island Acquisitions Kapalua has sold its Montage Kapalua Bay holdings to a Tenessee-based company, KWC Management LLC. 


KWC Management, LLC, a hospitality investment management company part of Kemmons Wilson Companies, has recently marked a significant milestone in its portfolio with the acquisition of Montage Kapalua Bay. The Maui property is the first Hawaii property in their portfolio, which includes hotels in CA, CO, DC,  FL, LA, NY, TN, UT, and WY that are managed by a variety of companies, with brands including the Holiday Inn, Hyatt, Marriott, Windham and Kimpton.

Management: Originally developed in 2009 and branded a Ritz-Carlton Club and Residences, with both fractional and whole ownership options, the Kapalua Bay Residences were acquired by IAK in foreclosure proceedings from Lehman Brothers Holdings in 2013 and rebranded as a Montage Residences in 2014.  At that time Montage Hotels put into place a 30-year contract to manage the property. 
Condominium Residences: 146 Residences total
Whole Ownership: 112 Residences, a mix of 84 larger Grand Residences in buildings 1, 2, 5, and 6 and 28 smaller Hotel Residences in buildings 3 and 4.
Privately Owned: There are 105 Residences that are privately owned
Developer Owned: There are 7 Hotel Residences that remain developer-owned
Fractional Ownership: There are 34 Hotel Residences that have 1 or more fractions sold (1/12th interest).  A total of 177 fractions were sold as Ritz-Carlton Residences, leaving approximately 231 unsold fractional interests.

Historical Sales: While branded a Ritz-Carlton Residences from 2009-2011 sales at the property ranged from $2,400,000 to $5,735,000.  Since being rebranded as the Montage Residences, sales ranged from $2,400,000 to $13,295,000
Awards and Acknowledgements (2023):   The Montage Kapalua Bay has received accolades from Forbes and US News and World Report, including Best Maui Hotels/Best Maui Resorts – #2, Best Hawaii Hotels/Best Hawaii Resorts – #6, Best USA Hotels – #40, Best USA Resorts – #18 (U.S. News & World Report) and  5 Star Rating – Montage Kapalua Bay, 5 Star Rating – Spa Montage (Forbes Travel Guide)

The sale to KWC includes approximately 7 unsold developer residences and 231 fractional interests, as well as outdoor event space, four restaurants, and the Spa Montage. Negotiations are reported to have begun in the spring and have closed at $33 million.  KWC Management has brought on White Label Asset Management for the asset management of the property.

As reported by the Maui News, “Since first visiting Hawai’i in the early 1980s, we have held a profound respect for the islands, their culture and people, and we have grown only more intrigued through the process of making Montage Kapalua Bay part of our portfolio,” Webb Wilson, CEO of KWC Management, said in a news release Wednesday. “In light of the current tragedy, we grieve for the people of Maui. We intend to find ways to be involved in caring for the displaced residents and community of West Maui. Under our ownership, the resort will continue to offer programming that enlightens guests on Hawaiian cultural practices and history and benefits their personal wellness and renewal.”


Courtney M. Brown, R(S) & Team
Vice President
Island Sotheby's International Realty


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