Crystal Mountain, the Hawaii resort owned by the late Jerry B. Crystal, is selling all its hotel rooms, as the resort has fallen into bankruptcy and is unable to meet its debts.
Crystal Mountain was the last resort in the islands to offer luxury suites and was founded in 1926 and opened in 1949.
Its last resort room was removed in 2001.
Its total occupancy was only 7,865 at the time of the purchase.
Crystal Mountain was purchased by Hilton Worldwide in 2017 for $5.7 billion.
Crystal is currently operating the Hilton Hawaiian Village Resort in Kauai, Hawaii, a luxury hotel that has been described as the “Queen of Hawaii.”
Crystal has been the subject of multiple lawsuits over the years, and its latest lawsuit in the case was filed in October 2018.
In the latest lawsuit, Crystal filed a motion to dismiss, alleging that the judge lacked jurisdiction over the matter and that it was in the public interest for the lawsuit to proceed.
In a press release announcing the sale, Crystal said, “We look forward to continuing to enjoy our unique and unparalleled value in Hawaii as we continue to serve the state of Hawaii and our guests.”
In a press conference held Tuesday morning, Crystal’s lawyers, Jeffrey P. Cusick, and Tom O’Connor, said the resort had made significant progress on the bankruptcy and debt restructuring plan, and they were confident that the court would agree.
However, Cusicky told The Associated Press that they would continue to work with the court to ensure that the resort continued to meet the requirements of the bankruptcy.
In a letter to the judge, the resort said it is “confident that the Court will agree that the litigation will proceed without delay and that the Resort and its shareholders will be financially sound and financially secure.”
In addition to the resort, Crystal has leases for four of its hotels, and one of its properties has a hotel with a luxury suite that will be moved to another resort, said Cusicking.
“We are very pleased that the Board has determined that we are financially sound,” he said.
In addition, the Resort’s lease agreements with other hotels are up for renewal.
“The Board will continue to seek opportunities to acquire hotels,” said Cussick.