Dive Brief:
- Affiliates of KSL Capital Partners have acquired The Westin Hilton Head Island Resort & Spa in South Carolina, the private equity firm announced Thursday. The Marriott resort was acquired through KSL’s Tactical Opportunities Fund, though additional terms of the transaction were undisclosed.
- Located along a 600-foot stretch of the Atlantic coast, the resort offers 420 guest rooms and suites as well as luxury amenities focused on wellness and culinary experiences.
- The Westin Hilton Head is “exactly the kind of high-quality, experience-driven destination we look to support at KSL,” Dan Rohan, partner and head of tactical opportunities at KSL, said in a statement. Luxury assets, in particular, pose a big opportunity for hotel investors this year as traveler behavior changes, according to a recent JLL report.
Dive Insight:
Located in “one of the Southeast’s most sought-after leisure destinations,” the Westin Hilton Head is “one of the grand dames of the region,” according to Rohan.
The property offers amenities including direct beach access, three outdoor pools, a spa and farm-and-sea-to-table dining at multiple on-site restaurants. Meanwhile, there is nearly 40,000 square feet of indoor and outdoor event space that can accommodate up to 1,000 guests.
Since 2012, the Westin Hilton Head has undergone more than $47 million in property improvements, positioning it as “the island's premier luxury beachfront resort and a go-to destination for refined, wellness-focused experiences,” according to KSL. The resort’s guest rooms are newly revamped, with beach-inspired decor, private balconies and ocean views.
Denver-based KSL Capital Partners adds the resort to a portfolio of high-end travel and leisure investments. Earlier this year, the firm acquired Hyatt’s Playa Hotels & Resorts real estate portfolio in a joint venture with Mexico City investment firm Rodina.
KSL’s Westin deal comes amid a softened global hotel transaction environment as capital market uncertainty lingers. Luxury hotel acquisitions, though, will be a standout opportunity for investors for the remainder of the year, as high-net-worth wealth grows and high-end consumers continue to prioritize travel, JLL detailed in an August report.
