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Ilikai hotel to close

The shutdown will affect as many as 142 union employees

By Erika Engle

POSTED: 03:43 p.m. HST, Jul 07, 2009

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The iconic Ilikai hotel will close Thursday, putting as many as 142 union members and an undetermined number of nonunion employees, out of work -- and ending an era in Hawaii's hotel industry.

iStar Financial Inc., the New York-based parent of a company that bought the hotel for $51 million at a foreclosure auction in May, revealed its intention to close the hotel operation today, as UNITEHERE! Local 5, the union representing employees, planned a vigil for tomorrow afternoon to encourage the company to keep the hotel open and keep the employees working.

"iStar had hoped that its subsidiary, SFI Ilikai Property Owner, would be able to identify sufficient cost savings and operational efficiencies to allow the hotel to continue active operations after it takes possession of the property July 10, 2009. Unfortunately, alternatives to reduce the operating losses at the hotel have not to date been achieved, thus leading to the decision to close the hotel," the statement said.

The closure will not directly affect operations at the 806 other condominium and timeshare units or common areas within the Ilikai property.

Current guests will be moved to other hotels and those with future reservations will be accommodated elsewhere, according to the iStar statement.

The iconic Ilikai hotel will close Thursday, putting as many as 142 union members and an undetermined number of nonunion employees, out of work -- and ending an era in Hawaii's hotel industry.


iStar Financial Inc., the New York-based parent of a company that bought the hotel for $51 million at a foreclosure auction in May, revealed its intention to close the hotel operation today, as UNITEHERE! Local 5, the union representing employees, planned a vigil for tomorrow afternoon to encourage the company to keep the hotel open and keep the employees working.

"iStar had hoped that its subsidiary, SFI Ilikai Property Owner, would be able to identify sufficient cost savings and operational efficiencies to allow the hotel to continue active operations after it takes possession of the property July 10, 2009. Unfortunately, alternatives to reduce the operating losses at the hotel have not to date been achieved, thus leading to the decision to close the hotel," the statement said.

The closure will not directly affect operations at the 806 other condominium and timeshare units or common areas within the Ilikai property.

Current guests will be moved to other hotels and those with future reservations will be accommodated elsewhere, according to the iStar statement.

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