GUAM HOTEL SELLS FOR $7.9 MILLION

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By Gaynor Dumat-ol Daleno

HAGATNA, Guam (Pacific Daily News, Dec. 28) - The Holiday Inn Resort Guam has been sold for $7.9 million, the latest hotel in Tumon Bay to change ownership.

The price tag is about $20 million less than the property's tax-appraised value, according to records at real estate consulting firm The Captain Company.

The property was sold to the husband and wife Hee K. Cho and Min S. Cho and Kwun Realty, a California limited liability company.

The Holiday Inn sale and the earlier purchase of the Hilton Guam Resort & Spa may not be the last Guam hotel property ownership changes for Guam.

Although tourism has been rebounding from a host of setbacks -- including the September 11, 2001 terror attacks and Supertyphoon Pongsona in December 2002 --many Guam hotels under mortgage by Japan-based banks are under pressure to sell their Guam holdings.

"You're still going to see disposition activity taking place," said W. Nicholas Captain, president of The Captain Company. "There are still certain owners that are under pressure by their lenders."

The Hilton Guam property was sold on Nov. 16 for about $30 million to DaVinci-RP Hotel Investors LLC, which would lease out the property to DaVinci-RP Operating Lessee Inc.

The Holiday Inn property shifted ownership from Five D. Enterprises, which is owned by local businessman Ely Del Carmen.

Formerly known as The Parc Hotel, the property, which has more than 250 rooms, was placed under Holiday Inn management in 2000.

The hotel went through renovations estimated at $700,000 as part of its being a Holiday Inn-branded hotel, according to Pacific Daily News files.

It was unclear whether the change in ownership will change the hotel's management or brand. The Holiday Inn management declined to comment.

December 29, 2004

Pacific Daily News: www.guampdn.com

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