The hotel came close to foreclosure last spring as interest rates soared and it was unable to make loan payments. The owners negotiated for concessions from the holder of its $186 million mortgage, the Long Term Credit Bank in Japan.
Now the giant Japanese international trading company Nissho Iwai Corp., which held a 50 percent interest through its local subsidiary, NI Hawaii Resort Co., has bought out the other two 25 percent partners and assumed full responsibility.
They were Ritz-Carlton and the owner of the land under the hotel, Maui Land & Pineapple Co., who had joined in a partnership called Kaptel Associates.
The price of the latest purchase was not disclosed. Toru Okuyama, Nissho Iwai deputy general manager, said in Honolulu earlier this week that his company believes in investing during a downturn in the economy.
However, the company has no plans to acquire other Hawaii properties and will concentrate on making the Ritz-Carlton, Kapalua a success, he said. Nissho Iwai has minority stakes in hotels in Asia and Turkey but the Maui property is its only 100 percent owned U.S. hotel.
John Toner, who remains general manager, said the management contract with Ritz-Carlton is a long-term commitment by the owners when management contracts these days average 10 years.
The hotel opened in 1992, two years behind schedule, after ancient Hawaiian bones were found during excavation at the site and the design had to be changed.